economy
February 17, 2026
Amazon snaps 9-day losing streak during which it lost more than $450 billion in value
Amazon expects to spend $200 billion this year on AI initiatives, the company said when it reported earnings.
TL;DR
- Amazon's stock rose over 1% on Tuesday, halting a nine-day losing streak.
- The company lost over $450 billion in market valuation during the slide.
- The selling pressure stemmed from Amazon's Q4 earnings report, which projected $200 billion in capital expenditures for the year, a 60% increase.
- Most of this spending is designated for AI-related initiatives, requiring significant infrastructure investment.
- Investors are wary of large AI spending by tech giants like Amazon, Alphabet, Microsoft, and Meta, fearing reduced free cash flows.
- Amazon CEO Andy Jassy expressed confidence that the spending will yield strong returns on invested capital.
- Analysts believe Amazon is in a 'prove it mode' to demonstrate returns on its capital expenditure.
- One analyst pointed to Amazon's plan to double data center capacity by 2027 as a key growth driver for AWS.
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