Eseandre Mordi
⬤ Amazon's stock has been taking a beating lately, and the numbers tell a pretty stark story. AMZN is currently tracking what could be its longest losing streak in two decades, shedding around 18% and erasing approximately $470 billion in market cap along the way. Shares were trading near $198.8 during the session, down another 0.42% as the selloff continued.
⬤ So what's behind the drop? Wall Street is clearly spooked by Amazon's plan to drop roughly $200 billion on AI-related infrastructure next year. We're talking data centers, chips, the whole nine yards. The concern isn't really about whether people want AI—it's more about the sheer scale and timing of all that capital going out the door at once. That kind of spending changes how investors think about near-term cash flow, especially when infrastructure is already being pushed to its limits, as covered in AI infrastructure news: data center boom faces hard limits.
⬤ Amazon isn't alone in this arms race. Big Tech as a whole is pouring historic amounts into compute capacity, with industry budgets expected to hit massive levels. The broader picture is laid out in AI infrastructure spending soars as Big Tech pushes toward $125B in CapEx, where platforms are going all-in to secure their AI position.
⬤ The bottom line? When you're committing that much capital over multiple years, markets start doing the math on risk versus reward pretty quickly. AMZN's price action shows just how fast sentiment can shift when infrastructure spending becomes the main debate instead of growth potential.
Eseandre Mordi
