Amazon Shares Plunge Below $250 Amidst Growing Concerns Over Infrastructure Spending
Amazon's stock has taken a hit after a recent rally that pushed it to $287. The company's shares have fallen below $250, raising concerns about its massive infrastructure spending and regulatory pressures.
A new supply agreement with Generac for backup power generators highlights the significant energy demands of Amazon's data-center expansion. Under the agreement, Generac could receive up to $8 billion in payments over 2027 and 2028.
The deal underscores the enormous costs associated with maintaining AWS' rapid growth. Despite strong demand, Amazon is committing substantial amounts of capital to advanced computing infrastructure, including its own proprietary processors and NVIDIA hardware.
Amazon's $220 billion spending plan for infrastructure development has raised concerns about its ability to maintain profitability amid rising capital expenditures and operational risks.