economy

February 6, 2026

Traders see a buying opportunity in Amazon despite spending concerns

Amazon said much of its big spending would be focused on artificial intelligence data centers.

Traders see a buying opportunity in Amazon despite spending concerns

TL;DR

  • Amazon's shares fell nearly 7%, with a total weekly drop of around 13%, its largest since 2022.
  • Traders like Malcolm Ethridge see the dip as a buying opportunity, supporting Amazon's $200 billion capital expenditure plan.
  • Much of the planned spending will be directed towards artificial intelligence data centers.
  • Brad Gerstner of Altimeter Capital trusts Big Tech executives to manage large investments, citing Andy Jassy's success with AWS.
  • Stephen Weiss of Short Hills Capital Partners acknowledges the spending announcement as a reason for the stock slide but questions the timing of the spending cycle's end.
  • Despite the recent decline, Amazon shares have doubled over the past three years.

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