Morgan Stanley Has Lowered Expectations for Amazon.com (NASDAQ:AMZN) Stock Price

Amazon.com (NASDAQ:AMZN) had its price target reduced by analysts at Morgan Stanley from $350.00 to $335.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an “overweight” rating on the e-commerce giant’s stock. Morgan Stanley‘s price objective would suggest a potential upside of 40.27% from the stock’s previous close.

A number of other equities research analysts have also weighed in on the stock. Guggenheim reiterated a “buy” rating and set a $320.00 price objective on shares of Amazon.com in a report on Friday. Cantor Fitzgerald lowered their price target on Amazon.com from $310.00 to $280.00 and set an “overweight” rating for the company in a report on Friday. Robert W. Baird set a $310.00 price objective on shares of Amazon.com and gave the company an “outperform” rating in a report on Friday, July 31st. Benchmark upped their target price on Amazon.com from $370.00 to $400.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $315.00 price target on shares of Amazon.com in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $321.35.

Amazon.com Price Performance

Shares of AMZN stock traded down $4.96 during trading hours on Friday, hitting $238.83. The stock had a trading volume of 70,448,509 shares, compared to its average volume of 46,188,230. The stock has a market capitalization of $2.58 trillion, a price-to-earnings ratio of 19.25, a PEG ratio of 1.98 and a beta of 1.45. The stock’s 50-day moving average price is $254.67 and its two-hundred day moving average price is $243.12. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. Amazon.com has a one year low of $196.00 and a one year high of $287.20.

Amazon.com (NASDAQ:AMZN) last issued its quarterly earnings data on Thursday, October 29th. The e-commerce giant reported $1.89 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.08). The company had revenue of $201.94 billion for the quarter, compared to analysts’ expectations of $202.22 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The company’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter last year, the company earned $1.95 earnings per share. Equities analysts forecast that Amazon.com will post 8.00 EPS for the current year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew Jassy sold 20,000 shares of Amazon.com stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total value of $5,180,200.00. Following the sale, the chief executive officer owned 2,235,766 shares in the company, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas Herrington sold 6,362 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $1,647,821.62. Following the transaction, the chief executive officer owned 476,681 shares of the company’s stock, valued at $123,465,145.81. This trade represents a 1.32% 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. Insiders sold a total of 71,589 shares of company stock valued at $18,580,515 in the last ninety days. 8.90% of the stock is currently owned by corporate insiders.

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. purchased a new stake in shares of Amazon.com during the second quarter worth about $29,000. Bard Associates Inc. purchased a new stake in shares of Amazon.com during the 2nd quarter valued at $32,000. Longfellow Investment Management Co. LLC acquired a new position in Amazon.com in the second quarter valued at $33,000. Atomic Invest LLC raised its holdings in shares of Amazon.com by 41.2% in the 2nd quarter. Atomic Invest LLC now owns 168 shares of the e-commerce giant’s stock worth $40,000 after purchasing an additional 49 shares during the period. Finally, Strategic Wealth Advisors LLC purchased a new position in Amazon.com in the second quarter valued at about $68,000. Hedge funds and other institutional investors own 72.20% of the company’s stock.

More Amazon.com News

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

• Positive Sentiment: AWS growth accelerated sharply. Amazon Web Services revenue increased 39% to approximately $46 billion, its fastest growth in nearly five years. Management expects AWS growth to exceed 40% in 2027 and 2028, supported by rising AI demand and improving cloud economics. Amazon Q3 Revenues Miss Estimates, AWS Growth Hits Near 5-Year High
• Positive Sentiment: Analysts remain broadly bullish. Canaccord Genuity, RBC, JPMorgan, Guggenheim and other firms maintained positive ratings, with price targets generally ranging from $275 to $335. Analysts point to AWS, AI services, Prime Video profitability and Amazon’s long-term infrastructure position as potential sources of upside. Analyst Reaffirms Buy on Amazon
• Positive Sentiment: New growth opportunities could expand Amazon’s AI ecosystem. Amazon plans to sell its Trainium AI chips to outside customers by late 2027, while its Leo satellite-internet service is expected to begin an initial rollout this year. Amazon Has Bigger Plans for AI Chips
• Neutral Sentiment: Generative AI is sending more shoppers to competing search and shopping tools, but research indicates Amazon still captures a majority of AI-assisted purchases, suggesting potential disruption to customer discovery without an immediate loss of transactions. Amazon Wins 59% of AI-Assisted Purchases
• Negative Sentiment: Amazon missed quarterly expectations. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue of $201.94 billion was slightly below consensus. Fourth-quarter sales guidance was also viewed as light, raising concerns about holiday demand and softer retail growth. Amazon Projects Fourth-Quarter Sales Below Estimates
• Negative Sentiment: The main investor concern is the scale and timing of AI spending. Amazon spent approximately $77.3 billion on property and equipment in the quarter, is maintaining a roughly $220 billion 2026 capital-expenditure plan, and reported a $42.4 billion trailing-12-month free-cash-flow loss. Rising debt and expectations for even higher 2027 spending have intensified worries that AI returns may take years to materialize. Amazon’s Record Margins Couldn’t Stop the Sell-Off

About Amazon.com

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company’s principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.