Why is Amazon stock dropping today?

Amazon.com Inc AMZN Shares are trading lower on Friday after the company reported its first-quarter financial results and issued second-quarter guidance that fell short of analysts’ estimates.

Amazon said first-quarter revenue increased 7% year-over-year to $116.4 billion, topping estimates of $116.3 billion. The e-commerce giant reported a quarterly net loss of $7.56 per share, which included non-operating expenses from Amazon’s investment in Rivian Automotive Company countryside.

AWS has been a bright spot for the company, growing 37% year over year.

Amazon said it expects second-quarter revenue to be between $116 billion and $121 billion, versus estimates of $125.55 billion, according to data from Benzinga Pro.

Related link: Amazon Q1 Takeaway: Mixed Earnings, Low Guidance Leads to Low Inventory

Analyst Rating: Following Amazon’s quarterly results, several analyst firms have revised their share price targets from $3,300 to $4,250.

• Raymond James maintained Amazon with a superior rating and lowered the target price from $3,950 to $3,300.
• JMP Securities maintained Amazon’s outperformance market rating and lowered its price target from $4,000 to $3,600.
• Credit Suisse maintained Amazon’s Outperform rating and lowered the target price from $4,100 to $3,700.
• UBS maintained Amazon with a buy rating and lowered its target price from $4,550 to $4,185.
• JPMorgan maintained Amazon with an overweight rating and lowered its price target from $4,500 to $4,000.
• Morgan Stanley maintained Amazon with an overweight rating and lowered the target price from $4,200 to $3,800.
• Cowen & Co. maintained Amazon’s superior rating and lowered its price target from $4,400 to $4,250.

AMZN Price Action: Amazon shares hit 52-week lows on Friday.

The stock is down 10.6% to $2,586 at press time.

Photo: Courtesy of Amazon.