Andy Jassy, CEO of Amazon, talking with CNBC on the World Financial Discussion board in Davos, Switzerland, Jan. 20, 2026.
CNBC
Amazon shares whipsawed on Tuesday, because the inventory tried to make a comeback from a historic slide.
Ought to the inventory shut within the pink, it might mark a tenth consecutive detrimental session, tying the corporate’s longest streak of each day losses on report, which it notched in 1997.
The nine-day slide reached Friday is the worst streak since 2006.
Amazon shares have misplaced roughly 18% of their worth since Feb. 2, axing about $450 billion in market valuation as buyers query the deserves of its synthetic intelligence spending plans.
The promoting frenzy round Amazon is tied to the corporate’s fourth-quarter earnings report launched earlier this month.
Amazon one-day inventory chart.
Amazon mentioned it expects to spend $200 billion in capital expenditures this yr, an almost 60% enhance from final yr and greater than $50 billion above Wall Road’s forecast. Many of the spending is anticipated to go to AI-related initiatives, which require extra infrastructure resembling knowledge facilities, chips and networking gear.
Buyers have grown more and more involved about tech corporations’ hefty AI investments and their potential to shrink or erase free money flows.
Alphabet, Microsoft, Meta and Amazon’s capital expenditures may hit $700 billion this yr as the businesses race to construct out extra infrastructure.
Alphabet inventory slid greater than 1% on Tuesday, whereas Microsoft and Meta shares had been down lower than a %. Shares of Microsoft and Alphabet are each headed for his or her fifth straight detrimental session.
Amazon CEO Andy Jassy defended the large outlay, telling analysts in a convention name that he is assured it’ll “yield robust returns on invested capital.”
Amazon Internet Providers CEO Matt Garman has additionally sought to justify the spending enhance, telling CNBC in an interview final week that the capex enhance will permit the corporate to grab AI alternatives within the cloud.
Wedbush analysts wrote in a analysis notice following Amazon’s fourth-quarter report that the corporate is now in “show it mode” to indicate buyers it might probably ship a return on capex spending.
“The rise in spending will stay an overhang as buyers digest the information and can seemingly have to see extra tangible returns earlier than regaining consolation,” the analysts wrote.
The agency has an outperform ranking on Amazon shares.
— CNBC’s Nick Wells contributed to this report.
