Does Amazon.com, Inc. (AMZN) Stock Have Further To Fall?

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Athough the market is closed today, many investors are wondering, what’s happening to Amazon.com’s (NASDAQ:AMZN) stock as of late. Shares have plunged close to 20% since the year began after the company reported a record-breaking holiday season.

At the same time though, the stock is trading at a PE ratio of 826, and the company continues to spend massively on new initiatives. While Amazon.com, Inc. (NASDAQ:AMZN) seems to be the future of shopping, in pretty much every vertical (maybe not homes or cars), investors likely are waiting for the company to turn their dominance into larger profits. With shares up big from their 2015 lows of $285 last January, there could still be room for further declines in the share price, although if the general market can turn around, we may be close to a bottom.

Ultimately it will be up to their 2015 Q4 earnings, which the company reports late next week. A solid report could certainly turn things around in a hurry.

The stock decreased 3.89% or $23.09 on January 15, hitting $569.91. About 7.78M shares traded hands or 59.43% up from the average. AMZN has risen 32.62% since June 12, 2015 and is uptrending. It has outperformed the S&P500 by 41.49%.

From a total of 26 analysts covering Amazon.com (NASDAQ:AMZN) stock, 22 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 85% of the ratings are positive. The highest target price is $900.0 while the lowest target price is $525. The mean of all analyst targets is $734.31 which is 28.85% above today’s ($569.91) stock price. Amazon.com was the topic of 64 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Positive” rating. M Partners initiated shares with a”Buy” rating and a $800.0 target share price in their report from a December 15. Monness Crespi & Hardt downgraded AMZN stock in a recent report from January 4 to a “Neutral” rating. Barclays Capital maintained the rating on December 1. Barclays Capital has a “Overweight” rating and a $850 price target on shares. Finally, Macquarie Research maintained the stock with a “Outperform” rating in a report they issued on a December 22.

The institutional sentiment increased to 1.49 in Q2 2015. It’s up 0.37, from 1.12 in 2015Q2. The ratio improved, 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 insider purchases, 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 $3.16M. Reynolds Shelley sold 720 shares worth $381,752. Olsavsky Brian T sold 2,098 shares worth $1.11 million. 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 $267.28 billion. The Firm sells a range of services and products through its Websites. It has 826.73 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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