The shares initially dipped when the Washington Post report was posted Friday but then quickly gained back some of the loss.
The source said New Jersey officials have not been given any indication that Amazon is considering moving out of NY.
Amazon executives responsible for the company's planned move to create a headquarters on the East Coast appear to be rethinking their decision when it comes to the NY location.
Two sources "familiar with the company's thinking" spoke with the outlet.
No specific plans to abandon the NY location has been made. Its shares fell around 2.4 percent on Friday.
But if it were to back out of the NY project, Amazon has plenty of options: More than a dozen other cities were in the running for HQ2. For Queens, the company has already printed out and mailed flyers to residents highlighting the economic benefits of its NY expansion.
"With their long history of abusing workers, partnering with ICE to aid their persecution of immigrant communities, and contributing to gentrification and a major housing crisis in their hometown of Seattle, New Yorkers are right to raise their concerns and opposition to this plan". They say they fear more crowded subway stations, an overburdened sewage system and rent increases that would drive out long-time residents. Amazon was down 2.3 percent at $1,576.98 just before noon in NY.
"I would be happy not to have them", said Terri Gloyd, the co-owner of the LIC Corner Cafe. What this does is help the new employees find an atmosphere in which they will feel comfortable and that their new neighbors will find familiar.
Amazon did not directly address the report but said it was focused on engaging with its future neighbors.
News that Amazon is considering backing out of its plan to build a new headquarters site in Queens comes just days after Democratic state Sen. "The city and state are working closely together to make sure Amazon's expansion is planned smartly, and to ensure this fast-growing neighborhood has the transportation, schools and infrastructure it needs".
NY Congresswoman Alexandria Ocasio-Cortez took to Twitter Friday to comment on the reports.
One reason for the big difference in whether Amazon is welcomed or not lies in the nature of the locations where the new headquarters would be.
New York Governor Andrew Cuomo framed the original announcement as a tremendous job creation opportunity for the entire New York region. "It is irresponsible to allow political opposition to overcome sound government policy".
"This whole thing has been bungled since day one by the mayor and the governor and Amazon", he said.
Amazon is set to start construction on its second headquarters in 2020.as long as the company decides to stick with its original plans. Amazon ended the frenzy by dividing the spoils between the two most powerful U.S. East Coast cities and offering a consolation prize of a 5,000-person center in Nashville, Tennessee. NY residents fear the same will happen to them.