Amazon.com (NASDAQ:AMZN) Shares Down 3.4% – Here’s What Happened

Amazon.com, Inc. (NASDAQ:AMZN) shares were down 3.4% on Tuesday . The company traded as low as $229.34 and last traded at $231.00. Approximately 46,958,519 shares traded hands during trading, an increase of 8% from the average daily volume of 43,554,125 shares. The stock had previously closed at $239.12.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: Analyst bullishness and price‑target raises support longer‑term upside — several firms (Scotiabank, Bernstein, Wells Fargo, BNP Paribas and others) have reiterated Outperform/Overweight ratings and lifted targets toward the $300 area, reinforcing the view that AWS/AI growth could drive upside. Read More.
• Positive Sentiment: AWS/AI narrative remains a core positive: social and analyst commentary highlights 20–23% AWS growth and rapidly increasing AI workloads, which underpin higher-margin revenue expectations. Read More.
• Neutral Sentiment: Options market and technical setups create mixed signals ahead of earnings — elevated put yields imply investors are hedging downside but some see the stock as cheap ahead of early‑February results; traders are choosing either pre‑earnings plays or waiting for confirmation. Read More.
• Neutral Sentiment: Company execution items (new quick‑commerce rollout in the U.K., PGA/AWS partnerships, sovereign‑cloud push) are incremental positives but unlikely to move the stock near‑term without better near‑term top‑line visibility. Read More.
• Negative Sentiment: CEO comments that U.S. tariffs are starting to “creep” into product prices raised concerns about higher consumer prices, squeezed demand for discretionary items, and margin/competitive effects on third‑party sellers. Those remarks were widely reported and are weighing on the retail outlook. Read More.
• Negative Sentiment: Macro/geopolitical headlines are dragging big tech — broader Magnificent Seven weakness and a market pullback tied to geopolitical rhetoric contributed to selling pressure on Amazon. Read More.
• Negative Sentiment: Insider selling and recent analyst target trims (e.g., Raymond James trimmed its target) are being cited by some investors as reasons for caution ahead of earnings. Read More.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on AMZN shares. Zacks Research lowered shares of Amazon.com from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 1st. Daiwa Capital Markets raised their price objective on Amazon.com from $254.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, November 11th. New Street Research boosted their target price on Amazon.com from $340.00 to $350.00 and gave the company a “buy” rating in a research report on Thursday, January 8th. Desjardins lifted their price objective on shares of Amazon.com to $218.00 in a research note on Monday, December 8th. Finally, Benchmark raised their target price on shares of Amazon.com from $260.00 to $295.00 and gave the stock a “buy” rating in a report on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, fifty-six have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $296.41.

Amazon.com Stock Down 3.4%

The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.80 and a current ratio of 1.01. The company has a fifty day simple moving average of $232.27 and a two-hundred day simple moving average of $228.78. The firm has a market capitalization of $2.47 trillion, a PE ratio of 32.63, a PEG ratio of 1.50 and a beta of 1.37.

Amazon.com (NASDAQ:AMZN) last announced its quarterly earnings results on Thursday, October 30th. The e-commerce giant reported $1.95 EPS for the quarter, beating the consensus estimate of $1.57 by $0.38. Amazon.com had a return on equity of 23.62% and a net margin of 11.06%.The firm had revenue of $180.17 billion for the quarter, compared to analyst estimates of $177.53 billion. During the same quarter last year, the firm posted $1.43 earnings per share. The business’s revenue for the quarter was up 13.4% on a year-over-year basis. Analysts forecast that Amazon.com, Inc. will post 6.31 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Douglas J. Herrington sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $233.22, for a total value of $583,050.00. Following the completion of the transaction, the chief executive officer owned 505,934 shares of the company’s stock, valued at $117,993,927.48. The trade was a 0.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Daniel P. Huttenlocher sold 1,237 shares of the stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $226.61, for a total value of $280,316.57. Following the sale, the director directly owned 26,148 shares in the company, valued at $5,925,398.28. This trade represents a 4.52% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 79,734 shares of company stock worth $18,534,017. 10.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Amazon.com

A number of hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC boosted its holdings in Amazon.com by 10.9% in the fourth quarter. Brighton Jones LLC now owns 4,036,091 shares of the e-commerce giant’s stock worth $885,478,000 after acquiring an additional 397,007 shares in the last quarter. Revolve Wealth Partners LLC raised its position 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 valued at $5,495,000 after purchasing an additional 986 shares during the last quarter. Bank Pictet & Cie Europe AG grew its position in Amazon.com by 2.8% during the 4th 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 last quarter. Highview Capital Management LLC DE increased its stake in Amazon.com by 5.5% during the 4th quarter. Highview Capital Management LLC DE now owns 28,975 shares of the e-commerce giant’s stock valued at $6,357,000 after purchasing an additional 1,518 shares in the last quarter. Finally, Liberty Square Wealth Partners LLC purchased a new position in shares of Amazon.com in the fourth quarter worth $2,153,000. 72.20% of the stock is currently owned by hedge funds and other institutional investors.

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.