Amazon.com (NASDAQ:AMZN) Trading Down 4.4% on Disappointing Earnings

Amazon.com, Inc. (NASDAQ:AMZN)’s share price was down 4.4% during mid-day trading on Thursday following a dissappointing earnings announcement. The company traded as low as $220.38 and last traded at $222.69. Approximately 91,859,452 shares were traded during trading, an increase of 107% from the average daily volume of 44,387,152 shares. The stock had previously closed at $232.99.

The e-commerce giant reported $1.95 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.97 by ($0.02). Amazon.com had a net margin of 10.83% and a return on equity of 23.09%. The firm had revenue of $213.39 billion during the quarter, compared to the consensus estimate of $211.02 billion. During the same period in the previous year, the company posted $1.86 earnings per share. The firm’s revenue for the quarter was up 13.6% compared to the same quarter last year.

Key Headlines Impacting Amazon.com

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

• Positive Sentiment: AWS and sales beat/strength — Amazon reported solid Q4 revenue and faster AWS growth, reinforcing the cloud growth thesis. AWS Q4 beat (CNBC)
• Positive Sentiment: Anthropic stake re‑valuation — Amazon’s earlier $8B investment in Anthropic is now being valued much higher (~$60.6B), underlining upside in AI partnerships and non‑core assets. Anthropic valuation (Business Insider)
• Positive Sentiment: Near‑term tax relief improves cash flow — Recent U.S. tax changes materially reduced Amazon’s federal tax cash outlays in 2025, which helps fund heavier capex without a proportional hit to free cash flow. Tax law reduces Amazon tax bill (WSJ)
• Neutral Sentiment: Management stance — CEO Andy Jassy said he’s “confident” the $200B program will deliver attractive returns over time; that defends the strategy but leaves timing/ROIC execution risk. CEO confidence (CNBC)
• Neutral Sentiment: New ad/AI product moves — Amazon is opening ad platform capabilities to AI agents (Ads MCP server beta), which could expand ad monetization but will take time to scale. Ads MCP beta (Newsfile)
• Negative Sentiment: CapEx shock and small EPS miss spooked traders — Amazon guided to roughly $200B in 2026 capex (well above expectations) and reported a slight EPS miss; that combination triggered heavy selling and a sharp gap lower in after‑hours/premarket trading. $200B capex guide (Reuters)
• Negative Sentiment: Regulatory and analyst pushback — Germany’s cartel office banned certain marketplace pricing controls and ordered repayments, adding regulatory risk; several firms also trimmed near‑term targets or flagged margin/cash‑flow risk tied to heavy capex. Germany antitrust (Reuters)

Analyst Upgrades and Downgrades

Several research analysts have recently commented on AMZN shares. Susquehanna set a $300.00 target price on Amazon.com and gave the stock a “positive” rating in a research note on Friday, October 31st. Maxim Group raised their price target on Amazon.com from $280.00 to $290.00 and gave the company a “buy” rating in a report on Friday. Roth Mkm reaffirmed a “buy” rating and set a $295.00 price objective (up from $270.00) on shares of Amazon.com in a research report on Monday, January 26th. BNP Paribas Exane assumed coverage on shares of Amazon.com in a research report on Monday, November 24th. They issued an “outperform” rating on the stock. Finally, BMO Capital Markets restated an “outperform” rating and set a $310.00 target price (up previously from $304.00) on shares of Amazon.com in a research note on Tuesday. Fifty-five analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $290.28.

Insider Buying and Selling at Amazon.com

In related news, CEO Matthew S. Garman sold 17,768 shares of the firm’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $216.90, for a total value of $3,853,879.20. Following the sale, the chief executive officer directly owned 6,273 shares of the company’s stock, valued at $1,360,613.70. This trade represents a 73.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Daniel P. Huttenlocher sold 1,237 shares of the business’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $226.61, for a total value of $280,316.57. Following the transaction, the director directly owned 26,148 shares of the company’s stock, valued at approximately $5,925,398.28. The trade was a 4.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 47,061 shares of company stock worth $10,351,262 over the last quarter. 9.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Amazon.com

Several institutional investors and hedge funds have recently added to or reduced their stakes in AMZN. Lifelong Wealth Advisors Inc. increased its stake in shares of Amazon.com by 2.4% in the fourth quarter. Lifelong Wealth Advisors Inc. now owns 1,740 shares of the e-commerce giant’s stock valued at $402,000 after buying an additional 41 shares during the period. Financial Connections Group Inc. grew its holdings in Amazon.com by 2.6% during the 4th quarter. Financial Connections Group Inc. now owns 1,633 shares of the e-commerce giant’s stock worth $376,000 after acquiring an additional 42 shares during the last quarter. Marquette Asset Management LLC increased its position in Amazon.com by 5.1% in the 4th quarter. Marquette Asset Management LLC now owns 886 shares of the e-commerce giant’s stock valued at $205,000 after acquiring an additional 43 shares during the period. Barlow Wealth Partners Inc. raised its stake in shares of Amazon.com by 0.4% during the second quarter. Barlow Wealth Partners Inc. now owns 12,565 shares of the e-commerce giant’s stock valued at $2,763,000 after acquiring an additional 44 shares during the last quarter. Finally, Western Financial Corp CA raised its stake in shares of Amazon.com by 1.5% during the fourth quarter. Western Financial Corp CA now owns 3,076 shares of the e-commerce giant’s stock valued at $710,000 after acquiring an additional 44 shares during the last quarter. Institutional investors own 72.20% of the company’s stock.

Amazon.com Trading Down 5.6%

The company has a market cap of $2.25 trillion, a P/E ratio of 29.33, a PEG ratio of 1.39 and a beta of 1.37. The firm’s 50 day moving average is $233.50 and its two-hundred day moving average is $229.78. The company has a quick ratio of 0.80, a current ratio of 1.01 and a debt-to-equity ratio of 0.14.

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.