Amazon.com (NASDAQ:AMZN) Trading Down 5.6% Following Weak Earnings

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

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 return on equity of 23.09% and a net margin of 10.83%.The company had revenue of $213.39 billion for the quarter, compared to analyst estimates of $211.02 billion. During the same period last year, the firm earned $1.86 earnings per share. The firm’s revenue for the quarter was up 13.6% on a year-over-year basis.

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)

Analysts Set New Price Targets

Several research firms have recently weighed in on AMZN. Citigroup reissued an “outperform” rating on shares of Amazon.com in a research report on Monday. Maxim Group lifted their price objective on shares of Amazon.com from $280.00 to $290.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. reissued a “buy” rating on shares of Amazon.com in a research note on Friday. BNP Paribas Exane assumed coverage on Amazon.com in a report on Monday, November 24th. They issued an “outperform” rating for the company. Finally, Wall Street Zen downgraded Amazon.com from a “buy” rating to a “hold” rating in a report on Saturday, January 10th. Fifty-five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $290.28.

Insider Activity at Amazon.com

In related news, Director Keith Brian Alexander sold 900 shares of the stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $233.00, for a total value of $209,700.00. Following the transaction, the director owned 7,170 shares in the company, valued at approximately $1,670,610. This represents a 11.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Daniel P. Huttenlocher sold 1,237 shares of Amazon.com stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $226.61, for a total transaction of $280,316.57. Following the completion of the sale, the director owned 26,148 shares of the company’s stock, valued at $5,925,398.28. This trade represents a 4.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 47,061 shares of company stock worth $10,351,262. 9.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Fairway Wealth LLC raised 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 acquiring an additional 60 shares in the last quarter. Sellwood Investment Partners LLC acquired a new position in Amazon.com during the third quarter valued at approximately $27,000. MilWealth Group LLC grew its holdings in Amazon.com by 79.0% during the fourth quarter. MilWealth Group LLC now owns 179 shares of the e-commerce giant’s stock valued at $41,000 after purchasing an additional 79 shares during the last quarter. Bridge Generations Wealth Management LLC raised its position in shares of Amazon.com by 2,330.0% in the third quarter. Bridge Generations Wealth Management LLC now owns 243 shares of the e-commerce giant’s stock valued at $53,000 after purchasing an additional 233 shares during the period. Finally, Cooksen Wealth LLC lifted its stake in shares of Amazon.com by 23.5% in 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 last quarter. Institutional investors and hedge funds own 72.20% of the company’s stock.

Amazon.com Trading Down 5.6%

The company’s fifty day moving average is $233.50 and its 200-day moving average is $229.78. The company has a current ratio of 1.01, a quick ratio of 0.80 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $2.25 trillion, a P/E ratio of 29.33, a P/E/G ratio of 1.39 and a beta of 1.37.

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.