Amazon's $200B AI Bet Backfires: Stock Hits 10-Day Losing Streak

$450 billion wiped out in ten trading days. That's the staggering amount Amazon has lost in market value since announcing its $200 billion AI spending spree for 2026.

The e-commerce giant is now staring at its longest losing streak since 1997—back when it was still "just" an online bookstore and the dot-com bubble hadn't yet burst.

When Giants Stumble

Amazon shares have plummeted 18% since February 2nd, threatening to tie the company's worst performance in nearly three decades. But this isn't 1997. Amazon today generates $650 billion in annual revenue and dominates cloud computing through AWS. When a company of this magnitude stumbles, it signals something deeper than typical market volatility.

The catalyst? Amazon's fourth-quarter earnings revealed capital expenditure plans that shocked Wall Street. The $200 billion figure represents a 60% jump from last year and exceeds analyst expectations by more than $50 billion.

The Big Tech AI Arms Race

Amazon isn't alone in this spending frenzy. Alphabet, Microsoft, and Meta are collectively pouring an estimated $700 billion into AI infrastructure this year. Data centers, specialized chips, networking equipment—the costs are astronomical, and the returns remain largely theoretical.

CEO Andy Jassy defended the massive outlay, promising "strong returns on invested capital." But investors aren't buying it. Wedbush analysts noted that Amazon has entered "prove it mode," where tangible results must justify the enormous bets.

The Uncomfortable Questions

Here's what's really unnerving investors: If AI is truly the next industrial revolution, why are the companies best positioned to capitalize on it seeing their stock prices crater? The disconnect suggests either the market is wrong about AI's timeline, or these companies are overestimating their ability to monetize the technology quickly.

Consider the irony: Amazon Web Services powers much of the internet, yet investors are questioning whether the company can effectively deploy capital in the very technology space it helped create.

Winners and Losers

While Amazon shareholders suffer, other players benefit. Semiconductor companies supplying AI chips see surging demand. Smaller, nimble AI startups attract venture capital at record valuations. Meanwhile, Big Tech's traditional cash cow businesses—advertising, e-commerce, cloud services—must now fund these massive, uncertain AI bets.