Amazon’s AI Spending Spree Triggers Worst Monthly Stock Performance in Years
Amazon shares plummeted 12% in February, marking their steepest monthly decline in recent memory. The selloff followed the company's revelation of a $200 billion capital expenditure plan focused on AI infrastructure—a figure that stunned Wall Street and overshadowed earnings.
As the worst performer among the Magnificent Seven tech stocks, Amazon's 5.2% year-to-date gain trails its peers. Monday's broader market retreat compounded losses, with shares dipping another 2% amid Middle East tensions.
While analysts maintain buy ratings with price targets reaching $340, traders increasingly view AI investments through the lens of the failed Metaverse HYPE cycle. The divergence highlights growing tension between speculative fervor and fundamental valuation in tech megacaps.
