Amazon.com (NASDAQ:AMZN) Stock Price Down 3.1% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price was down 3.1% during mid-day trading on Friday . The company traded as low as $245.78 and last traded at $246.03. Approximately 55,301,674 shares were traded during trading, an increase of 14% from the average daily volume of 48,326,977 shares. The stock had previously closed at $253.79.

Key Headlines Impacting Amazon.com

Here are the key news stories impacting Amazon.com this week:

• Positive Sentiment: Amazon unveiled an upgraded AI warehouse robot and is investing about €10 billion to expand its European fulfillment network, reinforcing its logistics edge and the potential for lower long-term operating costs. Article Title
• Positive Sentiment: Pinterest’s $4 billion AWS contract highlights continued demand for Amazon Web Services and supports the view that AWS remains a key growth engine for Amazon’s AI infrastructure business. Article Title
• Positive Sentiment: Several bullish commentary pieces argued that Amazon is undervalued relative to its AI, cloud, advertising, and custom chip opportunities, with analysts continuing to frame AMZN as a long-term AI winner. Article Title
• Neutral Sentiment: Amazon won a legal/regulatory victory at the NLRB over joint-employer claims tied to delivery service partners, removing one overhang but not materially changing the near-term growth outlook. Article Title
• Negative Sentiment: Reports that Amazon sellers are increasingly leaning on TikTok and other channels suggest pressure in parts of the marketplace ecosystem, which could signal softer seller loyalty and rising competition. Article Title
• Negative Sentiment: Amazon faces criticism from employees and local officials over massive AI data-center spending while layoffs continue, raising concerns about costs, labor relations, and political/regulatory scrutiny. Article Title
• Negative Sentiment: Rising shipping costs tied to global tensions ahead of Prime Day could squeeze margins during an important sales period, potentially tempering enthusiasm for near-term retail results. Article Title

Analyst Upgrades and Downgrades

A number of research firms have issued reports on AMZN. Robert W. Baird raised their target price on Amazon.com from $285.00 to $300.00 and gave the company an “outperform” rating in a research note on Thursday, April 30th. Monness Crespi & Hardt upped their price target on shares of Amazon.com from $280.00 to $315.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Wolfe Research reaffirmed an “outperform” rating and issued a $320.00 price objective (up from $245.00) on shares of Amazon.com in a report on Thursday, April 30th. Guggenheim reiterated a “buy” rating and issued a $320.00 price objective (up from $300.00) on shares of Amazon.com in a research report on Thursday, April 30th. Finally, Benchmark upped their target price on shares of Amazon.com from $275.00 to $370.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Amazon.com has a consensus rating of “Moderate Buy” and a consensus target price of $312.52.

Amazon.com Stock Down 3.1%

The firm has a market cap of $2.65 trillion, a price-to-earnings ratio of 29.43, a P/E/G ratio of 1.87 and a beta of 1.44. The firm’s fifty day moving average is $249.18 and its two-hundred day moving average is $232.89. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.18 and a quick ratio of 1.01.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 EPS for the quarter, beating the consensus estimate of $1.63 by $1.15. The firm had revenue of $181.52 billion for the quarter, compared to analysts’ expectations of $177.28 billion. Amazon.com had a net margin of 12.22% and a return on equity of 19.92%. Amazon.com’s quarterly revenue was up 16.6% on a year-over-year basis. During the same quarter last year, the company earned $1.59 EPS. On average, sell-side analysts expect that Amazon.com, Inc. will post 7.71 EPS for the current fiscal year.

Insider Activity at Amazon.com

In other news, CEO Douglas J. Herrington sold 27,500 shares of Amazon.com stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the transaction, the chief executive officer directly owned 471,361 shares in the company, valued at approximately $129,624,275. This trade represents a 5.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew R. Jassy sold 31,352 shares of the business’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total value of $8,621,800.00. Following the completion of the sale, the chief executive officer directly owned 2,175,766 shares in the company, valued at $598,335,650. This represents a 1.42% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 195,774 shares of company stock worth $51,614,434 over the last ninety days. Insiders own 8.90% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Brighton Jones LLC lifted its position in shares of Amazon.com by 10.9% during the 4th quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock valued at $885,478,000 after acquiring an additional 397,007 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in shares of Amazon.com by 4.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 25,045 shares of the e-commerce giant’s stock worth $5,495,000 after acquiring an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG raised its position in shares of Amazon.com by 2.8% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,016,869 shares of the e-commerce giant’s stock worth $442,481,000 after purchasing an additional 54,987 shares during the period. Highview Capital Management LLC DE raised its position in shares of Amazon.com by 5.5% during the fourth quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock worth $6,357,000 after purchasing an additional 1,518 shares during the period. Finally, Liberty Square Wealth Partners LLC purchased a new stake in shares of Amazon.com during the fourth quarter valued at $2,153,000. Institutional investors own 72.20% of the company’s stock.

Amazon.com Company Profile

Amazon.com, Inc is a diversified technology and retail company best known for its e-commerce marketplace and broad portfolio of consumer and enterprise services. Founded by Jeff Bezos in 1994 and headquartered in Seattle, Washington, the company launched as an online bookseller and expanded into a global retail platform that sells products directly to consumers and provides a marketplace for third-party sellers. Over time Amazon has grown beyond retail into areas including cloud computing, digital media, devices and logistics.

Key businesses and offerings include Amazon’s online marketplace and fulfillment services, the Amazon Prime membership program (which bundles expedited shipping with streaming and other benefits), Amazon Web Services (AWS) which supplies on-demand cloud computing and storage to businesses and public-sector customers, and a range of content and advertising services such as Prime Video and Amazon Advertising.