Amazon Shares Struggle After $450 Billion Market Value Wipeout

Amazon shares fluctuated on Tuesday as the stock attempted to stabilize following a historic selloff that erased approximately $450 billion in market value.

If the stock finishes lower again today, it would mark a tenth straight session of losses. That would match the company’s longest losing streak on record, previously set in 1997. The current nine-day decline is already the worst stretch for Amazon since 2006.

AI Spending Sparks Investor Concerns

Amazon stock has fallen about 18% since February 2. The sharp drop followed growing investor scrutiny over the company’s aggressive artificial intelligence investment plans.

The selloff accelerated after Amazon released its fourth-quarter earnings earlier this month. In the report, the company announced plans to spend $200 billion in capital expenditures this year.

That figure represents nearly a 60% increase compared to last year and exceeds Wall Street expectations by more than $50 billion.

Massive AI Infrastructure Investment

The majority of the planned capital spending will support AI-related projects. These initiatives require significant infrastructure, including data centers, advanced chips, and networking systems.

Investors are increasingly cautious about large technology companies committing enormous resources to artificial intelligence. There are concerns that such heavy spending could compress free cash flow in the near term.

CEO Andy Jassy Defends Strategy

Amazon CEO Andy Jassy addressed these concerns during an analyst conference call. He expressed confidence that the investment will generate strong long-term returns.

Jassy stated that the expanded capital expenditures are expected to “yield strong returns on invested capital,” reinforcing management’s belief that AI will drive future growth.

Despite the recent volatility, the market remains focused on whether Amazon’s bold AI strategy will justify the scale of its historic spending increase.