Amazon shares extended their decline for the tenth consecutive session, slipping over 1% to $196.13—the lowest level since May 2025. The stock has shed nearly 19% in just ten trading days, erasing about $450 billion in market value amid investor concerns over massive AI spending and sector-wide volatility.
Amazon Inc. is facing one of its steepest downturns in recent years, as its shares closed at $196.13 on February 17, marking a 10-day losing streak and a nine-month low. Despite reporting strong Q4 revenue of $213.4 billion and improved profits, investor sentiment remains cautious. The company’s ambitious $200 billion investment in artificial intelligence infrastructure has sparked debate, with many questioning the near-term returns of such a large-scale commitment.
Key Highlights
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Amazon shares dropped 1.34% on Tuesday, continuing a 10-day cumulative fall of 19.3%
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The decline has wiped out approximately $450 billion in market capitalization
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Stock performance marks Amazon’s longest losing streak since 2006
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Q4 results showed revenue of $213.4 billion, with profits rising year-on-year
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Investor concerns center on Amazon’s $200 billion AI infrastructure spend, seen as weighing heavily on near-term margins
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Sector-wide volatility in tech markets has amplified selling pressure, despite analysts maintaining “Buy” ratings
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Employee unrest is also surfacing, with over 1,000 staff warning management about AI risks and workplace pressures
Outlook
While analysts remain broadly optimistic about Amazon’s long-term prospects, the current downturn highlights the tension between aggressive innovation spending and investor appetite for near-term stability. Market watchers suggest a rebound could occur once broader tech sentiment stabilizes, but for now, Amazon’s stock remains under heavy pressure.
Sources: Mint, CNBC, Reuters