Amazon.com (NASDAQ:AMZN) Shares Down 2.9% - Here's What Happened

Key Points

• Shares down 2.9%: AMZN fell to $243.04 (intraday low $242.17) on Thursday, trading about 44.8 million shares versus an average of ~45.3 million and below the prior close of $250.20.
• Earnings beat: Amazon reported Q3 EPS of $1.95 versus $1.57 expected and revenue of $180.17 billion versus $177.53 billion, with revenue up 13.4% year-over-year.
• Analyst consensus and insider selling: MarketBeat shows a "Moderate Buy" consensus with a $293.17 price target (majority Buy ratings), while insiders including the CFO and CEO have recently sold shares, modestly reducing their holdings.

Amazon.com, Inc. (NASDAQ:AMZN) was down 2.9% during trading on Thursday . The stock traded as low as $242.17 and last traded at $243.04. Approximately 44,805,807 shares traded hands during trading, a decline of 1% from the average daily volume of 45,316,047 shares. The stock had previously closed at $250.20.

Wall Street Analyst Weigh In

Several research analysts have commented on AMZN shares. Wall Street Zen upgraded shares of Amazon.com from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. DZ Bank reiterated a "buy" rating on shares of Amazon.com in a report on Friday, October 31st. Maxim Group increased their price objective on shares of Amazon.com from $272.00 to $280.00 and gave the company a "buy" rating in a research note on Friday, October 31st. Cowen reaffirmed a "buy" rating on shares of Amazon.com in a research note on Friday, October 31st. Finally, Wolfe Research raised their price target on shares of Amazon.com from $265.00 to $270.00 in a research note on Tuesday, September 30th. Two analysts have rated the stock with a Strong Buy rating, fifty-four have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $293.17.

Amazon.com Trading Down 2.9%

The stock has a market cap of $2.59 trillion, a price-to-earnings ratio of 37.05, a P/E/G ratio of 1.52 and a beta of 1.28. The business's fifty day simple moving average is $226.85 and its 200 day simple moving average is $217.72. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 0.81.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings data on Thursday, October 30th. The e-commerce giant reported $1.95 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.38. The firm had revenue of $180.17 billion during the quarter, compared to the consensus estimate of $177.53 billion. Amazon.com had a net margin of 10.54% and a return on equity of 23.84%. The firm's revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.43 earnings per share. Amazon.com has set its Q4 2025 guidance at EPS. On average, research analysts predict that Amazon.com, Inc. will post 6.31 EPS for the current year.

Insider Activity at Amazon.com

In other news, CFO Brian T. Olsavsky sold 17,750 shares of the business's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $222.74, for a total transaction of $3,953,635.00. Following the completion of the transaction, the chief financial officer owned 49,000 shares of the company's stock, valued at approximately $10,914,260. The trade was a 26.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Douglas J. Herrington sold 22,000 shares of Amazon.com stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $250.03, for a total transaction of $5,500,660.00. Following the sale, the chief executive officer owned 493,507 shares in the company, valued at approximately $123,391,555.21. This represents a 4.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 128,084 shares of company stock valued at $29,405,457. Company insiders own 9.70% of the company's stock.

Institutional Trading of Amazon.com

Several institutional investors and hedge funds have recently bought and sold shares of AMZN. Fairway Wealth LLC grew its stake in Amazon.com by 113.2% during the 3rd quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant's stock valued at $25,000 after acquiring an additional 60 shares in the last quarter. Sellwood Investment Partners LLC bought a new stake in shares of Amazon.com in the third quarter valued at approximately $27,000. Carderock Capital Management Inc. acquired a new position in shares of Amazon.com in the second quarter valued at $27,000. Cooksen Wealth LLC acquired a new position in shares of Amazon.com in the first quarter valued at $36,000. Finally, Inlight Wealth Management LLC acquired a new position in shares of Amazon.com in the first quarter valued at $40,000. Institutional investors and hedge funds own 72.20% of the company's stock.

Amazon.com Company Profile

Amazon.com, Inc engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content.

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