Amazon Stock Slides 18%, Wipes Out $470B After $200B Capex Plan
Amazon stock plunged 18% on February 13, wiping out roughly $470 billion in market value after the company unveiled a $200 billion capital expenditure program. The sell-off reflects investor anxiety over the scale and timing of the spending plan and its potential impact on free cash flow.
1. Dramatic Market Cap Loss
On February 13, Amazon shares collapsed 18%, erasing approximately $470 billion in market capitalization as investors reacted sharply to the scope of the announced spending. The drop marked one of the largest single-day value losses ever for a U.S. company.
2. Details of the $200 Billion Plan
The company outlined a $200 billion capital expenditure program targeting expansion of fulfillment centers, cloud infrastructure and AI research initiatives. Investors cited concerns over rising cash burn, potential margin pressure and the timing of returns on these long-term investments.