Amazon.com (AMZN) was having its worst session in a month and a half after getting downgraded by JPMorgan, a move that sent shares down 3.1% Thursday.
Citing worries about gross profit growth at the online retailer, the firm cut its rating on the stock to neutral from overweight and reduced its price target from $333 to $300. Amazon was dropping $8.59 to $266.51 in recent trading. Percentage-wise, the last time it fell more in a session was Jan. 29, when it lost 5.7%.
Shares of Amazon have been a big winner in the past four years of the market rally. They're up 51% going back one year, and during the rebound that started in March 2009, the stock has soared 300%, according to Yahoo! Finance data. That easily outpaces the 105% rise of stocks overall, measured by the S&P 500, as well as the 127% climb for the Nasdaq Composite.
The downgrade comes with Amazon still near its all-time high and a day after the Seattle-based company said it would lower prices in the U.S. for a couple of its Kindle Fire HD readers. The shares reached a record in January, closing at $283.99, so as of the end of trading Wednesday at $275.10, Amazon was only around $9 from that peak.
On average, Wall Street analysts have a target price of $316.13 for Amazon, FactSet data show. That would be a 15% increase from the prior close. The low price target is $245, and the high is $370. Amazon has around twice as many buy or overweight ratings as it does holds or neutrals.