Amazon.com, Inc. (AMZN) Shares Plunge on Downgrade and General Market Drop

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After shares of Amazon.com, Inc. (NASDAQ:AMZN) hit new 52-week highs to close off 2015, 2016 seems to be getting off to a rocky start for the company’s stock, along with the market in general. Shares of Amazon.com, Inc. (NASDAQ:AMZN) are down $14.89 or 2.2% following a downgrade by Monness Crespi & Hardt from a ‘buy’ rating to a ‘neutral’ rating.

Last Tuesday the stock reached a new all time and 52-week high as investors latched onto the company after what was said to be a record-breaking holiday season. With a market cap of $316 billion, and a PE ratio of 980, analysts and investots may finally feel that the stock is getting a bit too far ahead of itself. It will be interesting to see how the market reacts to Amazon.com, Inc. (NASDAQ:AMZN) throughout the rest of this week. The stock decreased 1.91% or $13.18 during the last trading session, hitting $675.89. Approximately 33,221 shares traded hands. AMZN shares have risen 57.47% since May 29, 2015 and are currently uptrending. It has outperformed the S&P500 by 60.48%.

From a total of 26 analysts covering Amazon.com (NASDAQ:AMZN) stock, 23 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 88% of the ratings are positive. The highest target price is $850 while the lowest target price is $525. The mean of all analyst targets is $726.35 which is 7.47% above today’s ($675.89) stock price. Amazon.com was the topic of 60 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Axiom Capital maintained shares on December 28 with a “Buy” rating. Barclays Capital maintained shares with a”Overweight” rating and a $850 target share price in their report from a December 1. M Partners initiated AMZN stock in a recent report from December 15 with a “Buy” rating. Canaccord Genuity maintained the rating on October 23. Canaccord Genuity has a “Hold” rating and a $600 price target on shares. Finally, Pacific Crest initiated the stock with a “Overweight” rating in a report they issued on a December 8.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio is positive, as 67 funds sold all their Amazon.com, Inc. shares they owned while 376 reduced their positions. 166 funds bought stakes while 493 increased their total positions. Institutions now own 325.29 million shares which is 4.94% more than the previous share count of 309.99 million in 2015Q2.

Huntington Steele Llc holds 23.61% of its total portfolio in Amazon.com, Inc., equating to 103,872 shares. Tiger Global Management Llc owns 3.19 million shares representing 20.13% of their total US portfolio. Moreover, Tybourne Capital Management Hk Ltd has 18.16% of their total portfolio invested in the company, equating to 504,001 shares. The Washington-based Brighton Jones Llc has a total of 17.93% of their portfolio invested in the stock. Telemark Asset Management Llc, a Massachusetts-based fund reported 100,000 shares owned.

Since May 4, 2015, the stock had 0 buys, and 11 insider sales for a total of $27.04 million in net activity. Stonesifer Patricia Q sold 6,250 shares worth $3.16 million. Wilke Jeffrey A sold 5,908 shares worth $3.16 million. Reynolds Shelley sold 720 shares worth $381,752. Olsavsky Brian T sold 2,098 shares worth $1.11M. The insider Zapolsky David sold 2,322 shares worth $1.23M.

Amazon.com, Inc. is an e-commerce company. The company has a market cap of $316.83 billion. The Firm sells a range of services and products through its Websites. It has 980.46 P/E ratio. The Company’s products are offered through consumer-facing Websites, which include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers.

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