Amazon Stock Plunges Amid Signs of Strong Demand
Amazon's stock price fell by 1.3% on Tuesday, dropping as low as $253.78 and ending at $254.98. The company traded approximately 41 million shares, a decline of 13% from its average session volume.
The decline comes after a series of positive news stories impacting Amazon. The company signed an agreement worth up to $8 billion with Generac for backup power generators, including $2.4 billion in expected orders between 2027 and 2028. This deal supports the expansion of AWS data centers and highlights strong demand for AI infrastructure.
Amazon also plans to invest another $1.9 billion in its Delivery Service Partner program in 2027, funding higher driver pay, safety improvements, and AI-powered tools such as Smart Delivery Glasses. The company claims that serious crashes have declined by over 23%, while improved routing and delivery efficiency could support long-term operating performance.
UBS identified Amazon as a potential beneficiary of the ongoing AI infrastructure spending cycle and cited possible upside as AWS demand expands.