Amazon.com (NASDAQ:AMZN) Shares Down 4.4% After Earnings Miss

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

The e-commerce giant reported $1.95 earnings per share for the quarter, missing the consensus estimate of $1.97 by ($0.02). The firm had revenue of $213.39 billion during the quarter, compared to analyst estimates of $211.02 billion. Amazon.com had a net margin of 11.06% and a return on equity of 23.62%. Amazon.com’s revenue was up 13.6% on a year-over-year basis. During the same quarter last year, the business earned $1.86 earnings per share.

Key Amazon.com News

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

• Positive Sentiment: AWS momentum — cloud revenue and margins impressed: AWS grew strongly (mid-20% range) and operating margins widened, reinforcing the unit that drives much of Amazon’s profit expansion. AWS revenue continues to soar as cloud demand remains high
• Positive Sentiment: AI/product ecosystem catalysts — Amazon is expanding Alexa+ and exploring deeper OpenAI ties and new AI tools for media and devices, which support long-term monetization avenues. Hey Alexa—Amazon may be teaming up with OpenAI. Here’s why that matters
• Neutral Sentiment: Top-line came in ahead — total Q4 net sales rose ~14% y/y to $213.4B, beating estimates, which underscores resilient consumer and enterprise demand even as margins are under scrutiny. Amazon.com Announces Fourth Quarter Results
• Negative Sentiment: Massive capex shock — management forecasted roughly $200B of 2026 capital spending (vs. ~125B in 2025), well above Street expectations; investors view this as a near-term profit and free‑cash‑flow headwind. Amazon projects $200 billion in capital spending this year
• Negative Sentiment: EPS miss + market reaction — adjusted EPS missed by a small amount ($1.95 vs. ~$1.97), and the combination of the miss and capex guide triggered heavy selling (large after‑hours volume). Amazon stock falls 10% on $200 billion spending forecast, earnings miss
• Negative Sentiment: Regulatory and cost risks — recent German antitrust actions/fine and ongoing restructuring (store closures, layoffs) add near-term regulatory and execution risks. German cartel office bans Amazon from using price controls

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Citigroup reiterated an “outperform” rating on shares of Amazon.com in a research note on Monday. Rothschild & Co Redburn decreased their price objective on shares of Amazon.com from $250.00 to $230.00 and set a “neutral” rating for the company in a research report on Wednesday, January 21st. Robert W. Baird set a $285.00 target price on shares of Amazon.com and gave the stock an “outperform” rating in a research note on Friday, October 31st. William Blair restated an “outperform” rating on shares of Amazon.com in a research note on Monday, November 3rd. Finally, CIBC lifted their price objective on shares of Amazon.com to $315.00 in a research note on Monday, October 20th. One equities research analyst has rated the stock with a Strong Buy rating, fifty-four have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $296.37.

Insider Activity at Amazon.com

In other Amazon.com news, Director Keith Brian Alexander sold 900 shares of the company’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $233.00, for a total value of $209,700.00. Following the sale, the director directly owned 7,170 shares of the company’s stock, valued at approximately $1,670,610. This represents a 11.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Daniel P. Huttenlocher sold 1,237 shares of Amazon.com stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $226.61, for a total value of $280,316.57. Following the transaction, the director owned 26,148 shares of the company’s stock, valued at $5,925,398.28. The trade was a 4.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 47,061 shares of company stock valued at $10,351,262 over the last ninety days. Corporate insiders own 9.70% of the company’s stock.

Institutional Investors Weigh In On Amazon.com

Hedge funds have recently bought and sold shares of the stock. Spectrum Strategic Capital Management LLC increased its holdings in shares of Amazon.com by 34.3% during the 4th quarter. Spectrum Strategic Capital Management LLC now owns 18,195 shares of the e-commerce giant’s stock valued at $4,200,000 after purchasing an additional 4,648 shares in the last quarter. Sherry Group Inc. acquired a new stake in Amazon.com during the fourth quarter valued at $1,079,000. Odyssey Capital Advisors Inc. purchased a new position in Amazon.com in the fourth quarter valued at $3,704,000. CDM Financial Counseling Services Inc. acquired a new position in shares of Amazon.com in the fourth quarter worth about $1,405,000. Finally, Three Cord True Wealth Management LLC boosted its stake in shares of Amazon.com by 5.7% during the 4th quarter. Three Cord True Wealth Management LLC now owns 1,055 shares of the e-commerce giant’s stock worth $244,000 after acquiring an additional 57 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Amazon.com Stock Performance

The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.80 and a current ratio of 1.01. The firm has a market capitalization of $2.38 trillion, a PE ratio of 31.45, a price-to-earnings-growth ratio of 1.45 and a beta of 1.37. The firm’s 50 day moving average price is $233.97 and its 200-day moving average price is $229.91.

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.