Amazon.com (NASDAQ:AMZN) Stock Price Down 1.1% on Analyst Downgrade

Key Points

• Amazon shares fell 1.1% to about $259.53 after Cantor Fitzgerald cut its price target from $320 to $310, while maintaining an “overweight” rating.
• Analyst sentiment remains broadly positive, with 56 Buy ratings and three Holds; Amazon has a “Moderate Buy” consensus rating and a $322.53 average price target.
• Amazon reported strong recent results, including $200.61 billion in revenue and $5.75 in quarterly EPS, while investors continue to weigh its aggressive AI and data-center investments against potential pressure on free cash flow.

Shares of Amazon.com, Inc. (NASDAQ:AMZN) dropped 1.1% during mid-day trading on Monday after Cantor Fitzgerald lowered their price target on the stock from $320.00 to $310.00. Cantor Fitzgerald currently has an overweight rating on the stock. Amazon.com traded as low as $259.27 and last traded at $259.53. Approximately 24,842,260 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 46,487,453 shares. The stock had previously closed at $262.43.

Other research analysts have also issued research reports about the stock. Wells Fargo & Company set a $329.00 price target on shares of Amazon.com and gave the stock an "overweight" rating in a research note on Monday. Needham & Company LLC reaffirmed a "buy" rating and issued a $300.00 price objective on shares of Amazon.com in a research note on Friday, July 31st. Zacks Research lowered shares of Amazon.com from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 14th. JPMorgan Chase & Co. upped their price objective on shares of Amazon.com from $330.00 to $365.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Finally, DA Davidson reissued a "neutral" rating and set a $250.00 target price on shares of Amazon.com in a research report on Friday, July 31st. Fifty-six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Amazon.com has a consensus rating of "Moderate Buy" and a consensus price target of $322.53.

Insider Buying and Selling

In other news, CEO Douglas Herrington sold 6,362 shares of Amazon.com stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $259.01, for a total value of $1,647,821.62. Following the transaction, the chief executive officer owned 476,681 shares of the company's stock, valued at $123,465,145.81. This trade represents a 1.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Jassy sold 20,000 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $259.01, for a total transaction of $5,180,200.00. Following the completion of the sale, the chief executive officer owned 2,235,766 shares of the company's stock, valued at $579,085,751.66. The trade was a 0.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 71,589 shares of company stock valued at $18,580,515. 8.90% of the stock is owned by corporate insiders.

Amazon.com News Summary

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

• Positive Sentiment: Amazon is reportedly in talks to acquire AI startup Decart for approximately $7 billion. Decart develops software that allows developers to switch between AI chips and is also building “world models.” The acquisition could strengthen Amazon Web Services’ chip flexibility, support its custom silicon strategy and improve its competitive position in AI infrastructure. The deal remains unconfirmed and could still collapse. Amazon in Talks to Buy AI Startup Decart for Around $7 Billion
• Positive Sentiment: Reports that Amazon and Nvidia are evaluating AI startup investments reinforce expectations of continued growth in AI-related cloud demand. Amazon’s AWS expansion and advertising business are also being cited as long-term earnings drivers. Why It’s Time to Load Up on Amazon Stock
• Positive Sentiment: Analyst sentiment remains favorable: Cantor Fitzgerald maintained an “overweight” rating while reducing its price target from $320 to $310, still implying substantial upside from recent trading levels. Other coverage highlights AWS’s large backlog and accelerating AI revenue. Amazon.com Price Target Lowered to $310
• Neutral Sentiment: Amazon is reportedly considering having outside investors finance roughly $8 billion of Nvidia AI chips through a special-purpose vehicle, then leasing the hardware back. The structure could reduce upfront capital requirements, but also underscores the scale of expected AI spending and infrastructure commitments. Amazon Wants Investors to Finance $8 Billion of Nvidia Chips
• Negative Sentiment: Investors remain concerned that Amazon’s substantial AI and data-center investments could pressure free cash flow, particularly if the Decart acquisition proceeds at a premium valuation. Reports of job reductions alongside aggressive AI spending may also raise questions about execution and workforce disruption. What Projected Job Cuts at These Two Mag 7 Firms Says About AI in 2027

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Integrated Financial Solutions Inc. raised its holdings in Amazon.com by 5.8% during the 3rd quarter. Integrated Financial Solutions Inc. now owns 28,973 shares of the e-commerce giant's stock worth $7,219,000 after purchasing an additional 1,600 shares during the last quarter. Sacks & Associates LLC bought a new position in shares of Amazon.com in the 3rd quarter valued at about $1,257,000. HF Advisory Group LLC boosted its stake in shares of Amazon.com by 14.7% in the 3rd quarter. HF Advisory Group LLC now owns 24,216 shares of the e-commerce giant's stock valued at $6,033,000 after purchasing an additional 3,099 shares during the last quarter. Dupree Financial Group LLC grew its position in shares of Amazon.com by 1.6% during the 3rd quarter. Dupree Financial Group LLC now owns 39,632 shares of the e-commerce giant's stock worth $9,874,000 after buying an additional 624 shares during the period. Finally, Armstrong Advisory Group Inc. grew its position in shares of Amazon.com by 2.9% during the 3rd quarter. Armstrong Advisory Group Inc. now owns 36,972 shares of the e-commerce giant's stock worth $9,075,000 after buying an additional 1,054 shares during the period. Institutional investors and hedge funds own 72.20% of the company's stock.

Amazon.com Stock Performance

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.03 and a quick ratio of 0.87. The firm has a market capitalization of $2.80 trillion, a P/E ratio of 20.88, a P/E/G ratio of 2.03 and a beta of 1.45. The stock's 50 day moving average is $258.83 and its two-hundred day moving average is $250.16.

Amazon.com (NASDAQ:AMZN - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The e-commerce giant reported $5.75 earnings per share for the quarter, beating the consensus estimate of $1.82 by $3.93. Amazon.com had a net margin of 17.44% and a return on equity of 18.00%. The business had revenue of $200.61 billion for the quarter, compared to analyst estimates of $197.03 billion. During the same period in the prior year, the business posted $1.68 earnings per share. Amazon.com's revenue was up 19.6% compared to the same quarter last year. As a group, equities analysts anticipate that Amazon.com, Inc. will post 8.03 earnings per share for the current fiscal year.

About Amazon.com

Amazon.com, Inc is a global technology and commerce company that operates online marketplaces, physical stores, and a broad portfolio of digital and cloud-based services. The company offers consumer products across categories such as electronics, household goods, apparel, groceries, and entertainment, while also providing third-party sellers with tools for listing, selling, and fulfilling orders.

Amazon's major businesses include Amazon Web Services (AWS), which provides cloud computing, storage, database, analytics, and artificial intelligence services; Prime, a membership program that includes shipping, streaming, and other benefits; and digital entertainment services such as Prime Video, Amazon Music, Kindle, and Audible.

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