Amazon’s Stock Price (AMZN) Moves Red YTD, 10% Down From Earlier Highs

Amazon.com's stock price (AMZN) shed 1.84% to close at $219.36, moving AMZN red on a year-to-date basis. This marks a stark contrast to the optimism surrounding the stock earlier in the year when it reached its 52-week high of $242.52 in early February.

The current AMZN price sits ~10% below this peak, raising questions about the factors driving this downward trend, as analysts continue to remain bullish, with a consensus target of $241.82.

Several elements appear to be converging to pressure AMZN's share price. One of the most prominent is the ongoing sale of Amazon stock by its founder and Executive Chairman, Jeff Bezos.

In May, Bezos announced plans to sell up to 25 million shares, valued at approximately $4.75 billion, through a prearranged trading plan extending until May 2026. He has been actively executing this plan, with sales in late June amounting to nearly $737 million (approximately 3.3 million shares) and another $665.8 million (nearly 3 million shares) sold in early July.

While Bezos remains Amazon's largest individual shareholder, holding over 900 million shares, the sheer volume of these sales is undoubtedly impacting sentiment.

Historically, Bezos has used proceeds from stock sales to fund ventures such as Blue Origin and various philanthropic initiatives. However, the consistent selling pressure creates an overhang on the stock, potentially deterring some investors and amplifying any negative news or broader market anxieties.

The implementation of tariffs on Chinese imports by the U.S. administration has introduced supply chain complexities and potential cost increases for Amazon. The company has reportedly refused certain orders from China to mitigate the impact of these tariffs, which could strain long-term supplier relationships and potentially impact product availability and pricing.

Looking ahead, investors will be closely watching Amazon's next earnings report, expected on July 31, 2025. Analysts currently estimate an EPS of $1.314 for the current quarter and $6.31 for the full year 2025. Revenue for the quarter is estimated at approximately $161.9 billion.

In the previous quarter (Q1 2025), Amazon reported a strong EPS of $1.59, beating estimates by $0.21, and revenue of $155.67 billion, up 8.6% year-over-year. A strong earnings report could provide a much-needed catalyst to reverse the current negative trend.