On Tuesday, Amazon shares underperformed the other six members of the famed Magnificent Seven group, falling 3.2% and driving the sector’s overall pullback. Investors cited concerns over valuation following a sharp rally in late 2025, and profit-taking after the stock briefly reached new highs in November. The sell-off erased roughly $65 billion in market capitalization from Amazon in a single session, underscoring the sensitivity of Big Tech names to broader market rotation away from growth stocks.

In the third quarter, Philippe Laffont’s Coatue and Steven Schonfeld’s Schonfeld Strategic Advisors both reduced their Amazon holdings by approximately 8 million shares combined, reallocating capital into the iShares Bitcoin Trust ETF. Despite these sales, each fund continues to hold a meaningful Amazon stake, and Wall Street analysts maintain a consensus revenue growth forecast of 19% for fiscal 2026. Research firms highlight Amazon’s accelerating AI integration across AWS and logistics as key drivers of projected earnings-per-share gains.

Amazon this month officially rolled out its inaugural Amazon Now site in Southwark, marking its first foray into ultra-fast grocery delivery in the U.K. The offering promises fresh groceries and everyday essentials delivered within 30 minutes, leveraging compact fulfillment centers modeled on units tested in India and the UAE. Management expects the quick-commerce network to scale to five London zones by mid-year, potentially boosting the company’s U.K. grocery revenue base, which already accounts for over £2 billion annually.

Amazon disclosed plans to replace up to 600,000 warehouse roles with autonomous robots by 2027, aiming to shave an estimated $0.30 off the cost of each online order. The company hit its one-millionth robot deployment milestone in July 2025 and has rolled out a proprietary AI foundation model to optimize the robotic fleet. Analysts project that labor-automation savings could improve operating margins by 60 basis points over the next two fiscal years, strengthening free cash flow generation amid elevated capital expenditures.