Amazon.com (AMZN) shares plunge 3.39% intraday, close down 1.67% amid operational overhauls, sector-wide challenges.

Amazon.com (AMZN) shares plunged 3.39% intraday on October 14, 2025, hitting a level not seen since August 2025, with the stock closing down 1.67%. The selloff reflects a confluence of operational overhauls and sector-wide challenges, as the e-commerce giant navigates shifting market dynamics and strategic recalibrations.

Internal restructuring efforts have intensified, with Amazon announcing the elimination of approximately 100 roles in its Books division, including Kindle and GoodReads teams. The cuts follow a 1% decline in book sales in Q1 2024, driven by weaker performance in nonfiction and children’s categories. The move aligns with broader retail sector struggles, where inventory shrink—a term encompassing theft and losses—has reached a 10-year high of 2% of total sales. Amazon’s decision underscores its pivot toward efficiency amid stagnant consumer demand in legacy segments.

Investor concerns also centered on Amazon Web Services (AWS), the company’s cloud computing division. While AWS maintained revenue growth in line with expectations, its performance lagged behind competitors like Microsoft Azure and Google Cloud, dampening market enthusiasm. Pre-market trading saw shares drop over 6% after the Q2 2024 earnings report, as analysts noted underwhelming acceleration in cloud infrastructure expansion. Despite CFO Brian Olsavsky’s emphasis on sustained capital investments—$31.4 billion allocated in Q2 2024 for AI infrastructure—investors remain cautious about the long-term ROI of these expenditures.

Broader retail sector instability further pressured the stock. Amazon’s Books division layoffs mirror industry-wide trends, with smaller retailers facing permanent closures due to cash flow constraints. The company’s 15% reduction in HR roles and unresolved legal issues added to near-term volatility, though analysts like JPMorgan and Citi raised price targets to $265 and $270, respectively. They cited confidence in Amazon’s ability to balance cost-cutting with strategic AI-driven investments, particularly in AWS, which remains a critical growth engine.

While short-term headwinds persist, the stock’s trajectory hinges on Amazon’s capacity to align operational efficiency with innovation. Analysts view the current dip as a potential buying opportunity, emphasizing the company’s dominance in e-commerce and cloud computing. However, the path forward requires navigating retail sector fragility and ensuring AWS maintains its competitive edge against rivals. For now, the market remains divided between skepticism over immediate challenges and optimism about long-term resilience.