Wedbush Has Lowered Expectations for Amazon.com (NASDAQ:AMZN) Stock Price

Key Points

• Wedbush lowered its Amazon price target from $310 to $298 while maintaining an “outperform” rating, implying approximately 24.8% upside from the current price.
• Analyst sentiment remains broadly positive: Amazon has an average “Moderate Buy” rating and a consensus price target of $321.35, despite some firms reducing their targets.
• Amazon’s latest quarter fell slightly short of expectations, with EPS of $1.89 versus $1.97 expected and revenue of $201.94 billion versus $202.22 billion forecast; shares closed at $238.83 after declining $4.96.

Amazon.com (NASDAQ:AMZN - Get Free Report) had its price objective dropped by research analysts at Wedbush from $310.00 to $298.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the e-commerce giant's stock. Wedbush's price objective suggests a potential upside of 24.78% from the stock's current price.

Other equities analysts also recently issued research reports about the company. JPMorgan Chase & Co. upped their target price on Amazon.com from $330.00 to $365.00 and gave the company an "overweight" rating in a report on Friday, July 31st. DA Davidson set a $250.00 price target on shares of Amazon.com in a report on Friday. Cantor Fitzgerald dropped their target price on shares of Amazon.com from $310.00 to $280.00 and set an "overweight" rating for the company in a research report on Friday. Needham & Company LLC restated a "buy" rating and set a $300.00 price objective on shares of Amazon.com in a research report on Friday, July 31st. Finally, Guggenheim reiterated a "buy" rating and set a $320.00 price target on shares of Amazon.com in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fifty-six have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $321.35.

Amazon.com Stock Performance

AMZN traded down $4.96 during trading hours on Friday, hitting $238.83. The stock had a trading volume of 70,448,509 shares, compared to its average volume of 46,188,230. The company's fifty day simple moving average is $254.67 and its 200 day simple moving average is $243.12. The stock has a market cap of $2.58 trillion, a PE ratio of 19.25, a price-to-earnings-growth ratio of 1.98 and a beta of 1.45. The company has a quick ratio of 0.87, a current ratio of 1.03 and a debt-to-equity ratio of 0.23. Amazon.com has a 1 year low of $196.00 and a 1 year high of $287.20.

Amazon.com (NASDAQ:AMZN - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The e-commerce giant reported $1.89 EPS for the quarter, missing analysts' consensus estimates of $1.97 by ($0.08). The firm had revenue of $201.94 billion for the quarter, compared to analysts' expectations of $202.22 billion. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The firm's revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.95 earnings per share. Equities analysts anticipate that Amazon.com will post 8.00 earnings per share for the current year.

Insider Activity

In other Amazon.com news, CEO Douglas J. Herrington sold 6,362 shares of Amazon.com stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $1,647,821.62. Following the completion of the transaction, the chief executive officer owned 476,681 shares in the company, valued at approximately $123,465,145.81. This trade represents a 1.32% decrease in their position. The transaction 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, CEO Matthew Garman sold 14,541 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $259.06, for a total transaction of $3,766,991.46. Following the sale, the chief executive officer directly owned 17,794 shares in the company, valued at $4,609,713.64. The trade was a 44.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 71,589 shares of company stock valued at $18,580,515 over the last quarter. Insiders own 8.90% of the company's stock.

Hedge Funds Weigh In On Amazon.com

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MFG Investments LLC bought a new stake in shares of Amazon.com during the 3rd quarter worth about $1,767,000. Third View Private Wealth LLC increased its position in shares of Amazon.com by 3.2% during the 3rd quarter. Third View Private Wealth LLC now owns 132,562 shares of the e-commerce giant's stock valued at $33,028,000 after purchasing an additional 4,115 shares during the period. Provenance Wealth Advisors LLC increased its position in shares of Amazon.com by 997.9% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 94,209 shares of the e-commerce giant's stock valued at $23,472,000 after purchasing an additional 85,628 shares during the period. Ackerman Capital Advisors LLC bought a new stake in shares of Amazon.com in the 3rd quarter worth $252,000. Finally, Hughes Financial Services LLC lifted its holdings in shares of Amazon.com by 5.3% in the third quarter. Hughes Financial Services LLC now owns 3,344 shares of the e-commerce giant's stock valued at $815,000 after buying an additional 168 shares during the period. 72.20% of the stock is owned by hedge funds and other institutional investors.

Amazon.com News Roundup

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

• Positive Sentiment: AWS growth accelerated sharply. Amazon Web Services revenue increased 39% to approximately $46 billion, its fastest growth in nearly five years. Management expects AWS growth to exceed 40% in 2027 and 2028, supported by rising AI demand and improving cloud economics. Amazon Q3 Revenues Miss Estimates, AWS Growth Hits Near 5-Year High
• Positive Sentiment: Analysts remain broadly bullish. Canaccord Genuity, RBC, JPMorgan, Guggenheim and other firms maintained positive ratings, with price targets generally ranging from $275 to $335. Analysts point to AWS, AI services, Prime Video profitability and Amazon’s long-term infrastructure position as potential sources of upside. Analyst Reaffirms Buy on Amazon
• Positive Sentiment: New growth opportunities could expand Amazon’s AI ecosystem. Amazon plans to sell its Trainium AI chips to outside customers by late 2027, while its Leo satellite-internet service is expected to begin an initial rollout this year. Amazon Has Bigger Plans for AI Chips
• Neutral Sentiment: Generative AI is sending more shoppers to competing search and shopping tools, but research indicates Amazon still captures a majority of AI-assisted purchases, suggesting potential disruption to customer discovery without an immediate loss of transactions. Amazon Wins 59% of AI-Assisted Purchases
• Negative Sentiment: Amazon missed quarterly expectations. Earnings per share came in at $1.89 versus roughly $1.97–$2.01 expected, while revenue of $201.94 billion was slightly below consensus. Fourth-quarter sales guidance was also viewed as light, raising concerns about holiday demand and softer retail growth. Amazon Projects Fourth-Quarter Sales Below Estimates
• Negative Sentiment: The main investor concern is the scale and timing of AI spending. Amazon spent approximately $77.3 billion on property and equipment in the quarter, is maintaining a roughly $220 billion 2026 capital-expenditure plan, and reported a $42.4 billion trailing-12-month free-cash-flow loss. Rising debt and expectations for even higher 2027 spending have intensified worries that AI returns may take years to materialize. Amazon's Record Margins Couldn't Stop the Sell-Off

Amazon.com Company Profile

Amazon.com, Inc is a global technology and e-commerce company founded by Jeff Bezos in 1994. Originally launched as an online bookstore, the company has expanded into a broad digital marketplace offering consumer products across numerous categories, including electronics, household goods, apparel, groceries and other merchandise. Amazon also sells products under its own brands and provides logistics, fulfillment and delivery services that support its retail operations and third-party sellers.

The company's principal businesses include online and physical retail, Amazon Web Services (AWS), digital advertising, subscription services and consumer technology.

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