Amazon Shares Plunge 18% in Nine Days as Berkshire Cuts Stake 75%
Amazon shares slid 18.2% over nine trading days, wiping out $400 billion in market capitalization and driving year-to-date declines to 12.2%. In the same quarter, Berkshire Hathaway cut its stake by over 75%, reducing holdings to roughly 2.3 million shares in a major institutional exit.
1. Historic Nine-Day Selloff
Amazon endured an unprecedented nine consecutive trading-day decline, sliding 18.19% and erasing about $400 billion in market capitalization, leaving its year-to-date loss at 12.23% amid investor concerns over rising AI infrastructure spending.
2. Buffett’s 75% Stake Reduction
Berkshire Hathaway reduced its Amazon holdings by more than 75%, trimming the position to roughly 2.3 million shares during the quarter, reflecting a significant institutional reallocation away from the e-commerce and cloud leader.
3. Market Anxiety Versus Fundamentals
Futurum’s Chief Research Officer David Nicholson described the rout as driven by psychological factors rather than changes in Amazon’s core operations, likening it to a high-stakes “game of chicken” over AI spending versus returns.
4. Long-Term AI Investment Outlook
Despite the pullback, Amazon’s massive AI infrastructure investments are expected to underpin future growth as deployments scale and deliver tangible returns, supporting the company’s long-term valuation thesis.