Amazon CEO Andy Jassy speaks with CNBC at the World Economic Forum in Davos, Switzerland, January 20, 2026.
CNBC
Amazon Stocks fluctuated wildly on Tuesday as stocks attempted to recover from historic declines.
If the stock price closes in the red, it would be the 10th consecutive period of negative trading, matching the company’s record for longest consecutive deficit in a single day, set in 1997.
The nine-day decline reached Friday was the worst consecutive decline since 2006.
Amazon stock has lost about 18% of its value since February 2, dropping its market valuation to about $450 billion as investors question the merits of the company’s artificial intelligence spending plans.
The selling frenzy surrounding Amazon is tied to the company’s fourth-quarter earnings report released earlier this month.
Amazon’s daily stock price chart.
Amazon expects to spend $200 billion in capital spending this year, an increase of nearly 60% from last year and more than $50 billion more than Wall Street expected. Most of the spending is expected to go toward AI-related efforts, which require more infrastructure such as data centers, chips and networking equipment.
Investors are increasingly concerned about tech companies’ massive AI investments and the potential for free cash flow to shrink or disappear.
alphabet, microsoft, meta And Amazon’s capital spending could reach $700 billion this year as both companies rush to build out more infrastructure.
Alphabet stock fell more than 1% on Tuesday, while Microsoft and Meta stocks fell less than 1%. Microsoft and Alphabet’s stock prices are both heading for their fifth consecutive quarter of decline.
Amazon CEO Andy Jassy defended the huge spending to analysts on a conference call, saying he was confident the company would deliver “a strong return on the capital invested.”
Amazon Web Services CEO Matt Garman also sought to justify the spending increase, saying in an interview with CNBC last week that the increased capital spending will allow the company to seize AI opportunities in the cloud.
Wedbush analysts wrote in a research note following Amazon’s fourth-quarter report that the company is now in “proof mode” to show investors it can generate returns on capital investments.
“Spending growth will continue to be an overhang as investors digest the guide, and more tangible gains will need to be realized before comfort can return,” the analysts said.
The company has an Outperform rating on Amazon stock.
–CNBC’s Nick Wells contributed to this report.
