After peaking at $258 in November, Amazon’s share price has retreated to around $230, carving out what technical analysts identify as a head-and-shoulders formation. This pattern—characterized by a central peak flanked by two lower highs—prevails on daily and weekly charts and historically forecasts further weakness in about 65% of cases. With Amazon due to report quarterly results in early February, investors face heightened stakes: a failure to break back above the November high could trigger accelerated selling, while a decisive reversal through the $258 level would invalidate the bearish setup and likely draw in fresh buyers. Amazon allocated approximately $125 billion in capital expenditures in 2025—the largest annual capex in its history—to expand data centers, develop custom AI chips and secure renewable power for its operations. These investments underlie Amazon Web Services, which delivered roughly 20% revenue growth in the third quarter and recently secured a multi-year, $38 billion computing-power agreement with a leading AI developer. While this heavy spending has weighed on near-term margins and prompted investor impatience, management projects that the enhanced infrastructure and proprietary silicon will drive higher returns on capital from 2026 onward, positioning AWS to regain share in the rapidly growing AI cloud market.