Amazon Slumps 18% over Nine Sessions as $200B Capex Raises Red Flags
Amazon shares fell nine sessions straight, longest slump since July 2006, dropping 18% and wiping out $463 billion in market value. Investor concerns soared after company forecast $200 billion in capital expenditures on data centers and equipment this year, signaling potential negative cash flow.
1. Prolonged Share Decline
Amazon shares have fallen for nine consecutive trading days, marking the longest downturn since July 2006. The stock declined by 18% over this period, eliminating $463 billion from the company’s market capitalization and closing at levels not seen since May.
2. Aggressive Capex Outlook
The company plans $200 billion in capital expenditures this year on data centers, semiconductor chips, and other infrastructure. This level of spending has raised concerns about negative free cash flow and prompted investors to reassess valuation metrics.
3. Industry-wide AI Spending Impact
Major technology firms including Amazon, Alphabet, Microsoft, and Meta have collectively forecast around $650 billion in capex for 2026. Investors worry that sustained high spending on artificial intelligence infrastructure could pressure cash flow and trigger revaluations amid market stress.