Amazon Shares Plummet as Investors Worry Over Massive Capital Spend
Amazon's stock price has fallen sharply in recent weeks, with shares poised to drop for a ninth consecutive day. The company's capital expenditure for 2026 is set to reach $200 billion, a significant increase from last year's $130 billion. This move is part of the tech giant's efforts to invest in Amazon Web Services (AWS) due to high demand, according to CEO Andy Jassy.
Despite concerns over the massive expenditures on AI by tech companies, leaders such as Jensen Huang, CEO of Nvidia Corp., have backed the plan, stating that it is 'appropriate and sustainable' given the skyrocketing demand for AI. However, not all investors share this optimism, with some warning of further declines in Amazon's stock price.
One Stocktwits user predicted a short-term dip in shares next week, while another bullish user forecasted a potential rebound to $300 or more in the next six to 12 months. Meanwhile, retail sentiment around the stock has shifted from 'extremely bullish' to 'bullish', with some users citing Amazon's cheap price-to-earnings ratio as a buying opportunity.