Amazon Shares Slide 3.9% on March 27 as AI Spending and Executive Departure Pressure Stock
Amazon’s stock fell 3% last week as the Magnificent Seven sell-off erased over $850 billion in megacap value due to rising bond yields and inflation concerns. Shares dropped 3.89% on March 27, tied to higher AI-related capital spending, slowing retail growth and the departure of AI chip executive Gadi Hutt.
1. Weekly Sell-Off Impact
Amazon’s stock fell roughly 3% over the week ending March 27 as part of the Magnificent Seven slump that wiped out more than $850 billion in megacap market value. Rising bond yields and inflation concerns spurred investor rotation away from growth names.
2. Daily Drop on March 27
On March 27, Amazon shares slid 3.89% after reports highlighted escalating AI-related capital expenditures, regulatory headwinds and slowing retail growth. The move marked one of the steepest single-day percentage declines for the stock this quarter.
3. AI Chip Executive Departure
Gadi Hutt, director of product and customer engineering at Annapurna Labs, has left Amazon’s custom chip division after contributing to the development of Trainium processors. His exit is the second senior departure in seven months, raising questions about leadership continuity in Amazon’s AI hardware efforts.