Amazon Stock Pulls Back Amid AI Spending Concerns and Berkshire Exit

Amazon's stock price has pulled back after reaching an all-time high of $287 on Monday, following the company's latest earnings report. The decline comes as investors reassess Amazon's aggressive investment strategy, particularly in artificial intelligence (AI) infrastructure.

The exit of Warren Buffett's Berkshire Hathaway from its Amazon position has added to concerns about the stock's momentum. Berkshire sold off all 2.276 million shares remaining in Q1 2026, after reducing its stake substantially during the final quarter of Buffett's tenure as CEO.

Amazon founder Jeff Bezos plans to sell approximately 15 million shares, worth around $4.07 billion, further adding to selling pressure on the stock.

The company's massive spending on AI infrastructure is raising questions about whether it will generate sufficient returns to justify the costs involved. Amazon Web Services (AWS) recently announced a $1 billion initiative to embed AI engineers directly within customer organizations, but investors are questioning its feasibility and potential impact on cash flow.