Amazon.com (NASDAQ:AMZN) Stock Price Down 5.6% After Earnings Miss

Amazon.com, Inc. (NASDAQ:AMZN) was down 5.6% on Friday following a dissappointing earnings announcement. The company traded as low as $200.31 and last traded at $210.32. Approximately 179,639,031 shares changed hands during mid-day trading, an increase of 258% from the average daily volume of 50,150,563 shares. The stock had previously closed at $222.69.

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

Amazon.com News Roundup

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

A number of equities analysts have issued reports on the stock. Roth Mkm restated a “buy” rating and set a $295.00 target price (up previously from $270.00) on shares of Amazon.com in a research report on Monday, January 26th. Rothschild & Co Redburn set a $230.00 price objective on Amazon.com in a research report on Wednesday, January 21st. Wolfe Research reaffirmed an “outperform” rating and issued a $275.00 target price on shares of Amazon.com in a research note on Monday, January 5th. Canadian Imperial Bank of Commerce raised their price target on Amazon.com to $315.00 in a research report on Monday, October 20th. Finally, William Blair reissued an “outperform” rating on shares of Amazon.com in a report on Monday, November 3rd. Fifty-five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Amazon.com presently has a consensus rating of “Moderate Buy” and an average target price of $290.28.

Insider Activity

In other Amazon.com news, CEO Douglas J. Herrington sold 4,784 shares of the firm’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $232.71, for a total value of $1,113,284.64. Following the sale, the chief executive officer directly owned 498,182 shares of the company’s stock, valued at approximately $115,931,933.22. This trade represents a 0.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Andrew R. Jassy sold 19,872 shares of Amazon.com stock in a transaction dated 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 completion of the sale, the chief executive officer owned 2,208,310 shares of the company’s stock, valued at $479,070,771.40. This trade represents a 0.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 47,061 shares of company stock valued at $10,351,262 in the last three months. Company insiders own 9.70% of the company’s stock.

Hedge Funds Weigh In On Amazon.com

Large investors have recently bought and sold shares of the stock. Fairway Wealth LLC lifted its stake 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 valued at $25,000 after purchasing an additional 60 shares in the last quarter. Sellwood Investment Partners LLC acquired a new stake in Amazon.com during the 3rd quarter worth approximately $27,000. MilWealth Group LLC raised its holdings in Amazon.com by 79.0% in the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after buying an additional 79 shares during the period. Bridge Generations Wealth Management LLC lifted its position in Amazon.com by 2,330.0% during the third quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock valued at $53,000 after buying an additional 233 shares in the last quarter. Finally, Cooksen Wealth LLC grew its stake in Amazon.com by 23.5% during the second quarter. Cooksen Wealth LLC now owns 247 shares of the e-commerce giant’s stock worth $54,000 after buying an additional 47 shares during the period. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Stock Down 5.6%

The firm’s 50-day moving average price is $233.50 and its 200-day moving average price is $229.79. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.01 and a quick ratio of 0.80. The company has a market cap of $2.25 trillion, a price-to-earnings ratio of 29.33, a price-to-earnings-growth ratio of 1.31 and a beta of 1.37.

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.