Amazon Stock Plummets 18% as Investors Weigh Massive $200 Billion AI Spending Plan

Amazon (AMZN) shares experienced a significant sell-off throughout February 2026, dropping nearly 18% in value. The decline followed management's announcement of a staggering $200 billion capital expenditure plan dedicated to AI infrastructure. This aggressive investment strategy wiped out over $460 billion in market capitalization within just two weeks, marking the stock's longest daily losing streak in 20 years. Investors are increasingly concerned about the potential strain on short-term profitability and free cash flow resulting from such massive spending commitments. The market reaction highlights a sharp shift in sentiment toward big-tech growth stocks as the immense costs of AI dominance become a primary concern for shareholders.