Amazon Inc. shares remained under pressure after Wall Street reopened on Tuesday, 17 February, following the Presidents’ Day holiday on Monday.
The shares opened the session at $198.13, slightly above Friday’s close of $197.79, but failed to sustain the mild positive opening as they quickly resumed their losing streak, falling 1.34% to reach the day’s low of $196.13, marking the lowest level since May 2025.
Tuesday’s decline marked the e-commerce giant’s tenth consecutive day of losses, taking the 10-day cumulative fall to 19.3% based on the day’s low price and pushing the month-to-date decline to 18%, according to TradingView data.
The recent crash in the stock was triggered by the company’s mixed fourth-quarter earnings and its announcement of massive capital expenditure plans to build AI infrastructure.
The Nasdaq-listed company last week announced its financial performance for the December-ending quarter, reporting a revenue of $213.4 billion, a 14% increase from the same period last year.
Net income for the fourth quarter stood at $21.19 billion, or $1.95 per share, compared with $20 billion, or $1.86 per share, a year ago.
The results come as Amazon continues to reduce its workforce. Earlier this month, the company announced that it would lay off about 16,000 corporate employees, following roughly 14,000 job cuts in October.
Meanwhile, the e-commerce giant joined rivals in forecasting sharply higher expenditures this year, investing in data centres and other infrastructure to meet growing demand for artificial intelligence.
Amazon said it will spend $200 billion this year on data centres, chips, and other equipment, raising investor concerns that its massive AI bet may not yield long-term returns and could affect the company’s near-term operating performance.
Overall, US tech giants now aim to pour more than $650 billion into data centres and the AI chips that power them — an unprecedented level of investment.
Wall Street trades lower
The US stock market is trading in the red, with the S&P 500 falling 0.6%, while the Nasdaq Composite is declining even more sharply by 1% as technology stocks continue to remain under pressure.
Investor concerns persist that advanced AI tools could replace industry-specific software providers. Both the S&P 500 and the blue-chip Dow fell by more than 1% last week, while the technology-heavy Nasdaq Composite declined by more than 2%.
Meanwhile, these concerns appear to have overshadowed the latest US consumer price index data, which came in lower than market estimates for January, even as job growth unexpectedly accelerated during the same month.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
