Amazon.com (NASDAQ:AMZN) Stock Price Down 1.9% – Should You Sell?

Amazon.com, Inc. (NASDAQ:AMZN)’s share price traded down 1.9% during trading on Tuesday . The stock traded as low as $251.93 and last traded at $254.92. 31,387,269 shares traded hands during trading, a decline of 35% from the average daily volume of 48,520,371 shares. The stock had previously closed at $259.77.

More Amazon.com News

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

• Positive Sentiment: AWS and AI remain the main bullish catalysts. Recent coverage highlights AWS’s fastest growth in 18 quarters, while Amazon plans roughly $200 billion in 2026 capital spending and expects to double data-center power capacity by the end of 2027. Jefferies analysts also included Amazon among companies positioned to benefit from a potential $26 trillion AI market. AWS growth and Amazon investment article AI market winners article
• Positive Sentiment: Analysts and major investors are signaling confidence. Commentary points to expanding cash flow, improving AWS profitability and potential upside if AI infrastructure spending translates into sustained earnings growth. Duquesne Family Office reportedly increased its Amazon position more than tenfold, while Coatue Management raised its stake 49% in the second quarter. AWS investment thesis article
• Positive Sentiment: Amazon is expanding future growth options. Zoox is adding service at Las Vegas airport after beginning paid rides, and Amazon’s delivery network is projected to handle nearly 90% of its U.S. packages by 2029, potentially improving control and logistics efficiency. Zoox Las Vegas expansion article
• Neutral Sentiment: NetApp and AWS expanded migration capabilities for Amazon FSx for NetApp ONTAP, supporting enterprise cloud adoption. Amazon also added Alexa scam-protection tools and expanded creator-shopping capabilities through YouTube, but the near-term financial impact is uncertain. AWS and NetApp integration article
• Negative Sentiment: Regulatory risk remains an overhang. The FTC’s advertising lawsuit continues to pressure the stock, while the Justice Department requested beef-pricing information from Amazon and other retailers. These matters could create legal costs, operational restrictions or reputational risk. FTC advertising lawsuit article
• Negative Sentiment: Heavy spending and labor tensions could limit margins. Amazon’s AI and logistics investments require substantial capital before benefits are realized. Recent layoffs, a warehouse strike and disputes over delivery regulations add execution and cost concerns. Amazon delivery network article

Analysts Set New Price Targets

A number of brokerages have commented on AMZN. Piper Sandler restated an “overweight” rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a research note on Friday, July 31st. Benchmark lifted their price target on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a report on Friday, July 31st. Evercore set a $355.00 price target on Amazon.com and gave the company an “outperform” rating in a research note on Friday, August 28th. Truist Financial raised their price objective on shares of Amazon.com from $320.00 to $350.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, BMO Capital Markets reiterated an “outperform” rating and issued a $360.00 target price (up from $355.00) on shares of Amazon.com in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Amazon.com currently has an average rating of “Moderate Buy” and a consensus target price of $323.26.

Amazon.com Stock Up 1.7%

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The firm has a market capitalization of $2.80 trillion, a P/E ratio of 20.86, a price-to-earnings-growth ratio of 1.97 and a beta of 1.44. The business has a 50 day moving average price of $252.99 and a 200 day moving average price of $241.79.

Amazon.com (NASDAQ:AMZN) last released its earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.82 by $3.93. Amazon.com had a return on equity of 18.00% and a net margin of 17.44%.The firm had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same quarter last year, the firm posted $1.68 EPS. The company’s revenue was up 19.6% on a year-over-year basis. On average, analysts predict that Amazon.com, Inc. will post 8.05 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Matthew S. Garman sold 14,541 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the transaction, the chief executive officer owned 17,794 shares in the company, valued at approximately $4,609,713.64. The trade was a 44.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Brian T. Olsavsky sold 6,172 shares of the business’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $260.31, for a total value of $1,606,633.32. Following the transaction, the chief financial officer owned 109,207 shares in the company, valued at $28,427,674.17. This represents a 5.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 70,589 shares of company stock worth $18,314,015. 8.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Gryphon Financial Partners LLC lifted its stake in Amazon.com by 7.5% in the 1st quarter. Gryphon Financial Partners LLC now owns 73,085 shares of the e-commerce giant’s stock valued at $15,221,000 after purchasing an additional 5,125 shares during the last quarter. First Citizens Bank & Trust Co. increased its holdings in shares of Amazon.com by 1.7% during the 1st quarter. First Citizens Bank & Trust Co. now owns 303,862 shares of the e-commerce giant’s stock worth $63,285,000 after acquiring an additional 5,104 shares during the last quarter. Narwhal Capital Management raised its position in shares of Amazon.com by 2.3% in the fourth quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock valued at $49,997,000 after purchasing an additional 4,854 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Amazon.com by 21.0% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 24,653,228 shares of the e-commerce giant’s stock valued at $5,690,463,000 after buying an additional 4,275,942 shares during the last quarter. Finally, Blue Chip Partners LLC lifted its position in Amazon.com by 1.8% during the first quarter. Blue Chip Partners LLC now owns 147,461 shares of the e-commerce giant’s stock worth $30,712,000 after acquiring an additional 2,583 shares during the last quarter. 72.20% of the stock is owned by institutional investors.

About Amazon.com

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.