Key Points
- Research suggests Amazon’s stock has declined nearly 20% year-to-date in 2025.
- It seems likely that the stock is down 27.03% from its February 4, 2025, all-time high.
- The evidence leans toward analyst downgrades, like Jefferies lowering the price target, impacting investor confidence.
- It appears underperforming segments, such as smart home devices, and slower AWS growth compared to competitors are factors.
- Increased e-commerce competition post-COVID likely contributes, as online sales growth is harder with only 15% of retail sales online.
Stock Performance Overview
Amazon’s stock has faced a notable downturn in 2025, with a year-to-date loss of nearly 20% and a significant drop of 27.03% from its peak on February 4, 2025. This decline reflects broader challenges in the tech and consumer discretionary sectors, not unique to Amazon, but the company has seen recent gains evaporate.
Analyst and Market Reactions
Analyst actions, such as Jefferies lowering its price target from $275 to $250 in early April 2025 while maintaining a “Buy†rating, may have contributed to the stock’s decline. This adjustment aligns with Wall Street’s “Strong Buy†consensus, but it suggests a cautious outlook that could affect investor sentiment.
Business Segment Performance
Certain business segments, particularly smart home devices, are lagging, potentially dragging down overall performance. While advertising revenue surged to $17.3 billion in Q4 2024, showing 18% quarter-over-quarter growth, this high-margin area hasn’t offset declines in other areas.
Competitive Pressures
Amazon Web Services (AWS) is growing at 13% year-over-year, slower than competitors like Microsoft’s Azure and Alphabet’s Google Cloud, risking market share loss before 2030. Additionally, increased competition in e-commerce post-COVID, with online sales only accounting for 15% of retail, makes it harder for Amazon to achieve the high growth rates it once did, adding pressure on stock performance.
Survey Note: Detailed Analysis of Amazon Stock Decline in 2025
Amazon’s stock has experienced a significant decline in 2025, with multiple factors contributing to its performance as of April 19, 2025. This analysis delves into the detailed reasons behind the downturn, drawing from recent financial reports and market analyses to provide a comprehensive overview.
Stock Performance Metrics
The stock has seen a year-to-date loss of nearly 20%, a stark contrast to its performance earlier in the year. From its all-time high of $242.52 on February 4, 2025, it has dropped by 27.03%, closing at $172.63 on April 17, 2025, according to historical data from MacroTrends Amazon – 28 Year Stock Price History | AMZN | MacroTrends. This decline aligns with forecasts from Long Forecast, which predicted a -14.1% change for April 2025, with the stock closing at $165 from an opening of $192 AMAZON STOCK PRICE PREDICTION 2025, 2026, 2027-2029 – Long Forecast.
Analyst Sentiment and Price Target Adjustments
Analyst sentiment has played a role, with Jefferies lowering its price target from $275 to $250 in early April 2025, as noted in a report from 24/7 Wall St. Amazon Stock (NASDAQ: AMZN) Price Prediction and Forecast 2025-2030 for April 16. Despite maintaining a “Buy†rating, this adjustment reflects a cautious outlook, potentially impacting investor confidence and contributing to the stock’s decline.
Business Segment Performance
Specific business segments have underperformed, notably smart home devices, which are lagging behind expectations. This segment’s struggles are highlighted in the 24/7 Wall St. report, suggesting it drags on overall company performance. Conversely, advertising revenue showed strength, reaching $17.3 billion in Q4 2024 with 18% quarter-over-quarter growth, but this hasn’t been sufficient to offset declines in other areas Amazon Stock (NASDAQ: AMZN) Price Prediction and Forecast 2025-2030 for April 16.
Competitive Landscape and Growth Challenges
Amazon Web Services (AWS), a key revenue driver, is growing at 13% year-over-year, which is slower compared to competitors like Microsoft’s Azure and Alphabet’s Google Cloud. This slower growth rate poses a risk of market share loss before 2030, as detailed in the 24/7 Wall St. analysis Amazon Stock (NASDAQ: AMZN) Price Prediction and Forecast 2025-2030 for April 16. In e-commerce, increased competition post-COVID has made growth more challenging, with online sales only accounting for 15% of retail sales, making it harder to achieve the high growth rates seen a decade ago, further pressuring the stock.
Market Context and Broader Trends
The decline isn’t isolated to Amazon; it’s part of a broader tumult affecting tech and consumer discretionary stocks in 2025, as noted in the 24/7 Wall St. report. This context suggests macroeconomic factors and sector-wide challenges are also at play, though Amazon’s specific business issues amplify the impact.
Table: Summary of Key Metrics and Factors
| Metric/Factor | Detail |
| Year-to-Date Loss | Nearly -20% in 2025 |
| Decline from All-Time High | -27.03% from $242.52 on Feb. 4, 2025 |
| Analyst Price Target Adjustment | Jefferies: $275 to $250, maintained “Buy†|
| Underperforming Segment | Smart home devices lagging |
| AWS Growth Rate | 13% YoY, slower than competitors |
| E-commerce Competition | Increased, online sales 15% of retail |
This detailed analysis underscores the multifaceted reasons behind Amazon’s stock decline, combining internal business challenges with external competitive pressures and market dynamics.
Key Citations