Amazon.com (NASDAQ:AMZN) Trading Down 2% After Analyst Downgrade

Key Points

• Amazon shares fell 2% to about $226 after Mizuho trimmed its price target from $325 to $320, although it maintained an outperform rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $313.43; 57 analysts rate the stock Buy and three rate it Hold.
• Insiders sold 140,425 shares worth approximately $37.7 million over the past three months under pre-arranged trading plans, while institutional investors own 72.2% of Amazon’s shares.

Amazon.com, Inc. (NASDAQ:AMZN) fell 2% during trading on Wednesday after Mizuho lowered their price target on the stock from $325.00 to $320.00. Mizuho currently has an outperform rating on the stock. Amazon.com traded as low as $226.16 and last traded at $226.2690. Approximately 42,664,971 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 49,131,582 shares. The stock had previously closed at $230.86.

Several other research firms also recently issued reports on AMZN. Sanford C. Bernstein restated an "outperform" rating and issued a $315.00 price target (up from $300.00) on shares of Amazon.com in a research note on Thursday, April 30th. HSBC increased their price objective on Amazon.com from $280.00 to $310.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Weiss Ratings upgraded shares of Amazon.com from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, May 6th. Rosenblatt Securities raised their price target on shares of Amazon.com from $296.00 to $332.00 and gave the stock a "buy" rating in a research report on Thursday, April 30th. Finally, Scotiabank reissued an "outperform" rating and issued a $325.00 price objective (up from $275.00) on shares of Amazon.com in a report on Thursday, April 30th. Fifty-seven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $313.43.

Insider Activity

In other news, CEO Andrew R. Jassy sold 20,000 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $263.42, for a total value of $5,268,400.00. Following the completion of the transaction, the chief executive officer directly owned 2,205,766 shares in the company, valued at approximately $581,042,879.72. The trade was a 0.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP David Zapolsky sold 9,270 shares of the company'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 directly owned 41,190 shares of the company's stock, valued at approximately $11,060,750.70. This trade represents a 18.37% decrease in their position. 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. Over the last three months, insiders sold 140,425 shares of company stock valued at $37,715,464. Company insiders own 8.90% of the company's stock.

Trending Headlines about Amazon.com

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

• Positive Sentiment: AWS growth expectations remain strong. UBS maintained a Buy rating and expects continued AWS momentum and improving e-commerce profitability. Analysts are forecasting approximately 31%–33% year-over-year AWS growth, while a new $400 million compute agreement with Recursive Superintelligence and expanded AWS partnerships provide evidence of ongoing AI demand. Amazon heads into Q2 earnings with UBS bullish on cloud growth and e-commerce margins
• Positive Sentiment: Analyst long-term earnings expectations improved. Erste Group raised its FY2027 EPS estimate to $10.11 from $9.99, and Wall Street remains broadly constructive on Amazon’s long-term growth across cloud, advertising, commerce and custom AI chips. Amazon.com stock analyst estimates
• Positive Sentiment: Amazon continues expanding its strategic growth businesses. AWS India’s FY2026 consolidated profit increased more than tenfold, while Prime Video secured exclusive Canadian NHL playoff rights. Amazon is also seeking approval for a 5,105-satellite direct-to-phone network, potentially broadening Project Kuiper into mobile connectivity beginning in 2028. Amazon Leo seeks FCC approval for direct-to-phone network
• Neutral Sentiment: Thursday’s earnings are expected to produce significant volatility. Options markets imply a move of roughly 6% in either direction. Investors will focus on AWS revenue and margins, free cash flow, retail profitability, Prime Day effects and management’s capital-spending outlook. Expected Amazon stock move after earnings
• Negative Sentiment: AI spending is pressuring valuation and investor confidence. Amazon plans approximately $200 billion in 2026 capital expenditures and recently raised $25 billion through bonds to fund data-center expansion. UBS cut its price target to $305 from $333, citing higher future infrastructure costs and component prices. Amazon's AI spending faces a bigger test
• Negative Sentiment: Amazon’s AI-model overhaul introduces execution risk. The company is reportedly winding down several Nova models after layoffs and redirecting resources toward a new frontier model. While this may improve focus, it raises questions about prior investments and the pace of monetization. Short interest has also increased ahead of earnings.

Institutional Investors Weigh In On Amazon.com

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Amazon.com in the 4th quarter valued at approximately $32,868,735,000. Auto Owners Insurance Co boosted its position in Amazon.com by 27,376.7% in the fourth quarter. Auto Owners Insurance Co now owns 98,448,885 shares of the e-commerce giant's stock valued at $2,272,397,000 after buying an additional 98,090,585 shares in the last quarter. J. Stern & Co. LLP grew its stake in shares of 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 buying an additional 87,557,736 shares during the last quarter. Nuveen LLC acquired a new position in shares of Amazon.com during the first quarter worth $11,674,091,000. Finally, Cardano Risk Management B.V. increased its holdings in shares of 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 buying an additional 25,017,588 shares in the last quarter. 72.20% of the stock is currently owned by institutional investors.

Amazon.com Stock Down 2.0%

The company has a current ratio of 1.18, a quick ratio of 1.01 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $2.43 trillion, a P/E ratio of 27.07, a PEG ratio of 1.73 and a beta of 1.46. The stock has a 50 day moving average price of $247.03 and a 200 day moving average price of $236.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last issued its earnings results on Wednesday, April 29th. The e-commerce giant reported $2.78 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.63 by $1.15. The business had revenue of $181.52 billion during the quarter, compared to analysts' expectations of $177.28 billion. Amazon.com had a return on equity of 19.92% and a net margin of 12.22%.The business's revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.59 EPS. On average, research analysts anticipate that Amazon.com, Inc. will post 7.76 earnings per share for the current fiscal year.

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.

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