Stocks

Amazon.com (NASDAQ:AMZN) Shares Down 3.4% - What's Next?

Published March 29, 2025

Amazon.com, Inc. (NASDAQ:AMZN) saw its shares drop by 3.4% during mid-day trading on a recent Friday. The stock touched a low of $194.05 before closing at $194.52. A total of 14,663,697 shares were exchanged on that day, which represents a significant decline of 62% when compared to its average trading volume of 38,349,244 shares. Previously, the stock had closed at $201.36.

Analysts Set New Price Targets

Several analysts have recently updated their price targets for Amazon.com shares. For example, Wedbush reaffirmed an "outperform" rating with a target price of $280.00, while Barclays raised their target from $235.00 to $265.00, also giving the stock an "overweight" rating. Moreover, Rosenblatt Securities increased their price objective from $236.00 to $287.00 and assigned a "buy" rating. HSBC adjusted their target from $225.00 to $270.00, providing a "buy" rating, and Jefferies Financial Group supportively increased their target from $235.00 to $275.00 with a "buy" endorsement. The latest consensus from analysts indicates that 42 have rated the stock as a buy, two as hold, and one as a strong buy. According to MarketBeat.com, the consensus rating stands at a "Moderate Buy" with a target price averaging $260.65.

Amazon.com Stock Performance

The stock's performance is notable as its fifty-day simple moving average is at $217.53, while the 200-day moving average is at $208.75. Currently, Amazon has a debt-to-equity ratio of 0.18, a current ratio of 1.06, and a quick ratio of 0.87, demonstrating its financial stability. The company's market capitalization is approximately $2.04 trillion, with a price-to-earnings (PE) ratio of 34.72 and a price-to-earnings-growth (PEG) ratio of 1.50. The stock has a beta of 1.19, signifying its volatility compared to the overall market.

In its latest earnings report on February 6, Amazon.com announced earnings per share (EPS) of $1.86, surpassing analysts' predictions of $1.52 by $0.34. The company reported a net margin of 9.29% and a return on equity of 24.25%. Analysts predict that Amazon.com will post an EPS of 6.31 for the current fiscal year.

Insider Activity

In recent insider activity, CEO Andrew R. Jassy sold 20,784 shares of Amazon.com on February 21 at an average price of $220.65, totaling about $4.59 million. Post-sale, he retains ownership of roughly 2.12 million shares, valued at approximately $467.53 million. Additionally, CEO Douglas J. Herrington sold 27,500 shares on February 12 at an average price of $230.27, worth approximately $6.33 million. Following this transaction, he holds 497,067 shares valued at around $114.46 million. In the last quarter, insiders have sold a total of 102,298 shares worth $22.87 million. Currently, insiders hold approximately 10.80% of the company's shares.

Institutional Investors Weigh In On Amazon.com

In the realm of institutional investment, several firms have altered their positions in AMZN recently. Vanguard Group Inc. boosted their holdings by 2.2% in the fourth quarter, acquiring an additional 17.64 million shares, now totaling about 823.36 million shares valued at $180.64 billion. State Street Corp increased its shares by 3.3% in the third quarter, with now 359.18 million shares worth $66.93 billion. FMR LLC raised its holdings by 0.5%, now owning about 328.46 million shares valued at $72.06 billion. Geode Capital Management also reported a 2.5% increase, holding a total of 204.93 million shares valued at approximately $44.84 billion. Lastly, Price T Rowe Associates Inc. has increased its stake by 2.3%, now owning about 182.81 million shares worth $40.11 billion. Overall, around 72.20% of the stock is owned by hedge funds and other institutional investors.

Amazon.com Company Profile

Amazon.com, Inc. operates a vast retail business that sells consumer products and provides advertising and subscription services through both online and physical stores across North America and internationally. The company is divided into three key segments: North America, International, and Amazon Web Services (AWS). Additionally, Amazon produces and sells electronic devices, such as Kindle e-readers, Fire tablets, and Echo smart speakers, along with developing media content.