Amazon Plunges in 2006-Longest Slide Amid Capital Expenditure Concerns (AMZN-US)

Amazon (AMZN-US) is in its longest continuous decline since 2006, as investors question its mammoth capital spending. The stock fell 0.4% on Friday, Feb 13, closing the ninth straight losing day, the longest since July 2006. During the slide, shares have dropped 18%, erasing about $463 billion in market value and reaching a five-month low. The selloff follows the company’s财报, which showed it will invest up to $200 billion in data centers, chips, and other equipment this year, exceeding market expectations. Anthony Saglimbene, Ameriprise首席市場策略師, warned that if the heavy spending turns free cash flow negative, it would be a major red flag. Investor concern over AI-driven capital spending is spilling into Microsoft (MSFT-US) and Alphabet (GOOGL-US), with the four tech titans collectively expected to spend about $650 billion in 2026. Saglimbene said negative or weaker cash flow from such investments could change how the market values them, especially if AI progress underperforms. Amazon’s shares have fallen about 17% this month, likely the largest single-month drop since April 2022, while the Nasdaq Composite fell 3.2% in the same period.