Amazon.com (NASDAQ:AMZN) Stock Price Down 3.1% – Here’s Why

Amazon.com, Inc. (NASDAQ:AMZN) dropped 3.1% during 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.

Amazon.com News Roundup

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

• Positive Sentiment: Amazon’s latest AI and logistics push is a major bullish catalyst: the company unveiled an upgraded warehouse robot and is backing a €10 billion expansion of its European fulfillment network, which should support faster shipping, lower costs, and better operating efficiency. Reuters: Amazon unveils new AI warehouse robot in $12 billion Europe push
• Positive Sentiment: Amazon Web Services continues to win large contracts, including Pinterest’s $4 billion cloud deal through 2031, reinforcing AWS’s role as a key AI infrastructure beneficiary. Reuters: Pinterest signs $4 billion Amazon deal for cloud services
• Positive Sentiment: Several recent market commentary pieces highlighted Amazon’s growing AI, cloud, and advertising opportunities, with analysts continuing to frame AMZN as a long-duration AI winner. MarketBeat: Amazon.com stock and related coverage
• Neutral Sentiment: Amazon’s CEO Douglas Herrington sold 1,000 shares under a pre-arranged trading plan. The sale is small, but insider selling can still create some short-term caution. MarketBeat: Amazon.com insider trades
• Negative Sentiment: Amazon is facing fresh scrutiny over its aggressive AI spending, with employees publicly criticizing massive data-center investment while layoffs continue. That keeps cost and labor concerns front and center. CNBC: Amazon engineers in Seattle slam employer for building AI data centers while laying off staffers
• Negative Sentiment: Rising shipping costs tied to Middle East conflict could pressure Amazon’s retail margins ahead of Prime Day, adding another near-term headwind. Yahoo Finance: Iran war raises shipping costs ahead of Amazon Prime Day
• Negative Sentiment: Amazon also faces ongoing regulatory and reputational pressure from data-center pushback and privacy-related concerns around Ring, which may weigh on sentiment even if the long-term business outlook remains strong. Reuters: Texas grid flags risks as data centers, crypto sites fail voltage tests

Analyst Upgrades and Downgrades

Several brokerages have issued reports on AMZN. William Blair reiterated an “outperform” rating on shares of Amazon.com in a research report on Thursday, April 9th. UBS Group set a $315.00 price objective on shares of Amazon.com in a report on Monday, June 1st. Jefferies Financial Group restated a “market outperform” rating on shares of Amazon.com in a research report on Monday, June 1st. Arete Research upped their price target on Amazon.com from $301.00 to $310.00 and gave the company a “buy” rating in a research note on Monday, May 18th. Finally, Robert W. Baird raised their price target on Amazon.com from $285.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, April 30th. Fifty-seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $312.52.

Amazon.com Stock Performance

The company has a market cap of $2.65 trillion, a price-to-earnings ratio of 29.43, a P/E/G ratio of 1.84 and a beta of 1.44. The stock has a 50 day moving average price of $249.87 and a two-hundred day moving average price of $232.98. The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27.

Amazon.com (NASDAQ:AMZN) last posted its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.63 by $1.15. The company had revenue of $181.52 billion during the quarter, compared to analyst estimates of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The company’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.59 EPS. Analysts predict that Amazon.com, Inc. will post 7.71 EPS for the current year.

Insider Activity

In other Amazon.com news, CEO Matthew S. Garman sold 15,467 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.40, for a total transaction of $4,074,007.80. Following the sale, the chief executive officer directly owned 14,159 shares in the company, valued at approximately $3,729,480.60. This trade represents a 52.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $268.53, for a total transaction of $2,489,273.10. Following the sale, the senior vice president owned 41,190 shares in the company, valued at $11,060,750.70. This trade represents a 18.37% 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. In the last ninety days, insiders sold 195,774 shares of company stock worth $51,614,434. Corporate insiders own 8.90% of the company’s stock.

Institutional Trading of Amazon.com

Hedge funds have recently bought and sold shares of the stock. Compagnie Lombard Odier SCmA acquired a new position in Amazon.com during the third quarter worth about $451,642,000. Narwhal Capital Management grew its position in shares of Amazon.com by 2.3% during the 4th quarter. Narwhal Capital Management now owns 216,606 shares of the e-commerce giant’s stock worth $49,997,000 after buying an additional 4,854 shares during the period. Weaver Capital Management LLC boosted its holdings in Amazon.com by 13.6% in the fourth quarter. Weaver Capital Management LLC now owns 39,264 shares of the e-commerce giant’s stock worth $9,063,000 after acquiring an additional 4,713 shares in the last quarter. Ethos Financial Group LLC boosted its holdings in Amazon.com by 9.6% in the fourth quarter. Ethos Financial Group LLC now owns 36,485 shares of the e-commerce giant’s stock worth $8,421,000 after acquiring an additional 3,196 shares in the last quarter. Finally, Baltimore Washington Financial Advisors Inc. boosted its holdings in Amazon.com by 1.9% in the third quarter. Baltimore Washington Financial Advisors Inc. now owns 239,862 shares of the e-commerce giant’s stock worth $52,667,000 after acquiring an additional 4,558 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors and hedge funds.

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.