Amazon.com (NASDAQ:AMZN) Shares Down 2% After Analyst Downgrade

Amazon.com, Inc. (NASDAQ:AMZN) shares traded down 2% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $247.22 and last traded at $248.42. 35,526,116 shares were traded during mid-day trading, a decline of 25% from the average session volume of 47,553,070 shares. The stock had previously closed at $253.54.

A number of other research firms have also commented on AMZN. Telsey Advisory Group set a $335.00 price objective on Amazon.com and gave the stock an “outperform” rating in a research note on Friday, July 31st. Weiss Ratings reiterated a “buy (b)” rating on shares of Amazon.com in a report on Monday, August 3rd. Bank of America upped their target price on shares of Amazon.com from $310.00 to $320.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Piper Sandler reaffirmed an “overweight” rating and issued a $320.00 target price (up from $315.00) on shares of Amazon.com in a research report on Friday, July 31st. Finally, Benchmark lifted their target price on Amazon.com from $370.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Fifty-six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, Amazon.com has a consensus rating of “Moderate Buy” and a consensus price target of $323.26.

Insider Buying and Selling at Amazon.com

In related news, CEO Andrew Jassy sold 20,000 shares of Amazon.com stock in a transaction on Friday, August 21st. The shares were sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the transaction, the chief executive officer owned 2,235,766 shares of the company’s stock, valued at $579,085,751.66. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Garman sold 14,541 shares of the firm’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the completion of the sale, the chief executive officer owned 17,794 shares of the company’s stock, valued at $4,609,713.64. The trade was a 44.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 71,589 shares of company stock worth $18,568,785. Company insiders own 8.90% of the company’s stock.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Data-center power agreement supports AI expansion. Amazon agreed to purchase backup generators from Generac, with approximately $2.4 billion of deliveries expected in 2027–2028 and a potential total relationship of up to $8 billion through 2033. Amazon also received warrants to buy up to roughly 1.69 million Generac shares. The deal indicates Amazon is securing behind-the-meter power to avoid grid-connection delays for AWS data centers. Generac, Amazon strike $2.4 billion long-term generator supply deal
• Positive Sentiment: AWS momentum remains a major catalyst. CEO Andy Jassy said AWS has reached a $169 billion annual revenue run rate, reflecting strong demand for both AI and traditional cloud services. Analysts remain constructive, with Bank of America reiterating a Buy rating and a $320 price target. Amazon’s Andy Jassy Just Made a Startling Prediction
• Positive Sentiment: Delivery investment could strengthen retail competitiveness. Project Mercury reportedly aims to expand same-day delivery hubs from 85 to more than 1,000 by 2031, potentially placing facilities within 10 miles of 80% of U.S. Prime members and challenging Walmart’s delivery advantage. Amazon’s next move could reshape how America shops
• Neutral Sentiment: Amazon joined technology companies calling for stronger AI safety practices and industry standards. The move may reduce long-term regulatory uncertainty but has limited immediate earnings impact. Amazon Joins Calls for AI Safety and Industry Standards
• Negative Sentiment: Regulatory scrutiny is increasing. Two U.S. senators asked the FTC to investigate whether Amazon and Walmart’s AI shopping chatbots improperly suppress U.S.-made products or fail to identify fraudulent “Made in USA” labels. Amazon, Walmart chatbots attract senator ire
• Negative Sentiment: Higher wages and benefits for U.S. operations workers raise expenses, while heavy AI investment is pressuring free cash flow and increasing reliance on debt. AWS also said some customer data from damaged Bahrain and UAE facilities cannot be recovered, creating reputational and customer-retention risks. Amazon’s AI Bet Is Paying Off in Revenues

Institutional Trading of Amazon.com

A number of institutional investors have recently added to or reduced their stakes in the stock. TOP Private Wealth LLC. bought a new stake in Amazon.com in the 2nd quarter worth $29,000. Bard Associates Inc. bought a new stake in Amazon.com during the second quarter worth about $32,000. Longfellow Investment Management Co. LLC bought a new position in Amazon.com during the 2nd quarter valued at approximately $33,000. MilWealth Group LLC grew its position in Amazon.com by 79.0% during the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares during the last quarter. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of Amazon.com in the fourth quarter worth $45,000. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Stock Performance

The stock has a market cap of $2.71 trillion, a PE ratio of 20.24, a P/E/G ratio of 1.92 and a beta of 1.44. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.87 and a current ratio of 1.03. The business’s fifty day moving average price is $255.84 and its 200-day moving average price is $245.25.

Amazon.com (NASDAQ:AMZN) last released its quarterly earnings results on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $197.03 billion. During the same period last year, the business posted $1.68 EPS. The company’s revenue for the quarter was up 19.6% on a year-over-year basis. As a group, equities research analysts forecast that Amazon.com, Inc. will post 8.05 EPS for the current fiscal year.

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company that operates online marketplaces and provides a broad range of consumer products and services. Its retail business sells merchandise directly to customers and enables third-party sellers to offer products through Amazon’s websites and applications. The company also operates physical stores and provides services such as digital content, subscriptions, and consumer devices, including Kindle and Echo products.

Amazon Web Services (AWS) provides cloud computing, storage, database, analytics, artificial intelligence, machine learning, and other technology services to businesses, governments, and organizations.