Amazon.com (NASDAQ:AMZN) Stock Price Down 3.5% - Here's What Happened

Key Points

• Amazon shares fell 3.5% on Monday, trading as low as $260.70 after closing at $270.64, with trading volume running above average.
• Despite the pullback, Wall Street remains broadly bullish: several firms recently raised price targets, and the consensus rating is still Moderate Buy with an average target of $312.52.
• News flow was mixed, with positives around Amazon’s LEO satellite project, AI/cloud growth, and UK investment, while concerns included potential tougher EU cloud rules and a Blue Origin rocket setback that could delay its satellite plans.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) dropped 3.5% during trading on Monday . The company traded as low as $260.70 and last traded at $261.26. Approximately 52,737,231 shares changed hands during mid-day trading, an increase of 9% from the average daily volume of 48,406,945 shares. The stock had previously closed at $270.64.

Key Stories Impacting Amazon.com

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

• Positive Sentiment: Bank of America said Amazon’s LEO satellite project is “on the cusp of generating revenues,” with commercial service expected to begin soon, highlighting a potentially new growth engine beyond e-commerce and AWS. Amazon Stock Gets Buy Rating from BofA – ‘LEO Project Is on the Cusp of Generating Revenues’
• Positive Sentiment: Truist raised its price target on Amazon while keeping a Buy rating, adding to the bullish analyst sentiment around the stock. Wall Street analyst updates Amazon stock price target
• Positive Sentiment: Amazon said it has invested about £15 billion ($20 billion) in the U.K. so far in 2025, showing it is making progress on a major long-term infrastructure investment plan. Amazon Invested $20 Billion in UK in 2025
• Positive Sentiment: Several recent reports continue to frame Amazon as a beneficiary of AI and data-center spending, with bullish writeups pointing to expanding cloud momentum and new supply-chain services as possible profit drivers. Bank of America Reiterates Buy Rating on Amazon.com (AMZN) Stock
• Neutral Sentiment: Amazon’s stock also remains near record levels after a strong multi-year run, so some investors are questioning how much future growth is already priced in. Is It Too Late To Consider Amazoncom (AMZN) After Its Strong Multi Year Rally?
• Negative Sentiment: Reuters reported that the European Union is considering tougher cloud rules that could make Amazon less competitive for some government contracts in Europe. Exclusive: EU cloud rules to curb Amazon, Google access to strategic tenders, draft document shows
• Negative Sentiment: Amazon’s satellite internet efforts may face a near-term setback after a Blue Origin rocket explosion, which could slow the rollout of its LEO constellation. Amazon dips as the Blue Origin rocket explosion sets back its global satellite plan

Analysts Set New Price Targets

AMZN has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upped their price target on Amazon.com from $280.00 to $330.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Telsey Advisory Group upped their price target on Amazon.com from $300.00 to $315.00 and gave the company an "outperform" rating in a research note on Thursday, April 30th. HSBC upped their price target on Amazon.com from $280.00 to $310.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Roth Mkm upped their price target on Amazon.com from $285.00 to $300.00 and gave the company a "buy" rating in a research note on Thursday, April 30th. Finally, TD Cowen reissued a "buy" rating and set a $350.00 target price on shares of Amazon.com in a research note on Tuesday, May 12th. Fifty-seven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $312.52.

Amazon.com Trading Down 3.5%

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.01 and a current ratio of 1.18. The business has a 50-day simple moving average of $245.38 and a two-hundred day simple moving average of $232.50. The stock has a market cap of $2.81 trillion, a price-to-earnings ratio of 31.25, a P/E/G ratio of 2.03 and a beta of 1.45.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share for the quarter, topping analysts' consensus estimates of $1.63 by $1.15. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The firm had revenue of $181.52 billion during the quarter, compared to the consensus estimate of $177.28 billion. During the same quarter in the prior year, the firm posted $1.59 EPS. The business's revenue was up 16.6% on a year-over-year basis. As a group, research analysts forecast that Amazon.com, Inc. will post 7.71 EPS for the current year.

Insider Transactions at Amazon.com

In other Amazon.com news, CEO Andrew R. Jassy sold 31,352 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $8,621,800.00. Following the completion of the transaction, the chief executive officer owned 2,175,766 shares of the company's stock, valued at $598,335,650. This represents a 1.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Douglas J. Herrington sold 27,500 shares of the business's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $275.00, for a total transaction of $7,562,500.00. Following the transaction, the chief executive officer owned 471,361 shares in the company, valued at approximately $129,624,275. The trade was a 5.51% 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 90 days, insiders sold 194,774 shares of company stock worth $51,348,244. Insiders own 8.90% of the company's stock.

Institutional Trading of Amazon.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMZN. Norges Bank bought a new position in Amazon.com during the fourth quarter worth $32,868,735,000. Auto Owners Insurance Co boosted its position in Amazon.com by 27,376.7% during the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock worth $2,272,397,000 after purchasing an additional 98,090,585 shares during the period. J. Stern & Co. LLP boosted its position in Amazon.com by 20,598.0% during the fourth quarter. J. Stern & Co. LLP now owns 87,982,814 shares of the e-commerce giant's stock worth $20,308,193,000 after purchasing an additional 87,557,736 shares during the period. Nuveen LLC bought a new position in Amazon.com during the first quarter worth $11,674,091,000. Finally, Cardano Risk Management B.V. boosted its position in Amazon.com by 879.4% during the fourth quarter. Cardano Risk Management B.V. now owns 27,862,400 shares of the e-commerce giant's stock worth $6,431,199,000 after purchasing an additional 25,017,588 shares during the period. 72.20% of the stock is owned by institutional investors.

About Amazon.com

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.

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