Amazon faces historic stock decline, losing $450B amid AI spending concerns

Amazon, the e-commerce and cloud computing giant, has shed roughly $450 billion in market value since early February during a losing streak that could match the company’s longest run of daily declines on record.

Should the stock close lower, it would mark a tenth consecutive negative session, matching a streak last seen in 1997. The selloff has erased about 18% from the company’s valuation since Feb. 2.

The downturn stems from investor unease over Amazon’s plan to deploy $200 billion in capital expenditures this year, a figure that exceeded Wall Street projections by more than $50 billion. The bulk of that outlay targets AI-related infrastructure, including data centers, semiconductors, and networking equipment.

Wedbush Securities, a research firm covering technology stocks, described Amazon as now operating in “prove it mode.” Analysts at the firm maintained an outperform rating but cautioned that elevated spending will weigh on sentiment until concrete returns materialize.

The skepticism extends across mega-cap tech, with shares of Alphabet, Microsoft, and Meta also experiencing significant downturns after outlining elevated 2026 capital expenditure plans.

While the stocks are seeing a brief bounce on Tuesday, analysts caution that further downside remains possible as investors reassess the scale and timing of AI-related spending. Combined capital expenditures among the four tech giants could reach $700 billion this year.