Amazon.com (NASDAQ:AMZN) Shares Gap Down After Earnings Miss

Amazon.com, Inc. (NASDAQ:AMZN)’s stock price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $222.69, but opened at $202.70. Amazon.com shares last traded at $202.24, with a volume of 30,061,311 shares trading hands.

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

More Amazon.com News

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)

Analysts Set New Price Targets

Several equities analysts have recently issued reports on AMZN shares. BMO Capital Markets reissued an “outperform” rating and set a $310.00 target price (up from $304.00) on shares of Amazon.com in a research note on Tuesday. JMP Securities set a $300.00 price objective on shares of Amazon.com in a research report on Friday, October 31st. Robert W. Baird set a $285.00 target price on shares of Amazon.com and gave the stock an “outperform” rating in a research report on Friday, October 31st. Piper Sandler reaffirmed an “overweight” rating and set a $260.00 target price (down previously from $300.00) on shares of Amazon.com in a research note on Friday. Finally, Citigroup reissued an “outperform” rating on shares of Amazon.com in a research note on Monday, February 2nd. Fifty-five equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $290.28.

Insider Transactions at Amazon.com

In related news, CEO Matthew S. Garman sold 17,768 shares of the company’s stock in a transaction that occurred on 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 owned 6,273 shares in the company, valued at $1,360,613.70. This represents a 73.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Andrew R. Jassy sold 19,872 shares of the firm’s stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $216.94, for a total value of $4,311,031.68. Following the transaction, the chief executive officer directly owned 2,208,310 shares of the company’s stock, valued at approximately $479,070,771.40. This trade represents a 0.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 47,061 shares of company stock worth $10,351,262. Company insiders own 9.70% of the company’s stock.

Institutional Trading of Amazon.com

Institutional investors have recently bought and sold shares of the company. Fairway Wealth LLC increased its holdings in shares of Amazon.com by 113.2% in the 3rd quarter. Fairway Wealth LLC now owns 113 shares of the e-commerce giant’s stock worth $25,000 after purchasing an additional 60 shares in the last quarter. Sellwood Investment Partners LLC bought a new stake in Amazon.com in the 3rd quarter worth about $27,000. MilWealth Group LLC increased its holdings in Amazon.com by 79.0% in the 4th quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock worth $41,000 after buying an additional 79 shares in the last quarter. Bridge Generations Wealth Management LLC raised its position in Amazon.com by 2,330.0% in the 3rd quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock worth $53,000 after buying an additional 233 shares during the last quarter. Finally, Cooksen Wealth LLC lifted its stake in Amazon.com by 23.5% during the 2nd quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock valued at $54,000 after acquiring an additional 47 shares during the period. 72.20% of the stock is owned by hedge funds and other institutional investors.

Amazon.com Stock Performance

The business’s fifty day moving average price is $233.50 and its 200-day moving average price is $229.79. The stock has a market cap of $2.25 trillion, a PE ratio of 29.33, a P/E/G ratio of 1.31 and a beta of 1.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.80 and a current ratio of 1.01.

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.