Investor Capital Expenditure Concerns Heat Up, Amazon Stock May Face Its Longest Losing Streak in Nearly 20 Years

K-LinePoet · 2026-03-12T20:24:33+00:00

Amazon's stock price has declined consecutively, approaching its longest losing streak in 20 years. Investors are concerned about its $200 billion investment plan, causing the stock price to fall to lows and wiping out over $470 billion in market value. The market's sensitivity to high-intensity capital expenditures by tech companies has increased, which could impact valuation logic.

K-LinePoet

2026-03-12 20:24:33

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IT House, February 13 — According to Bloomberg reports this evening, Amazon’s stock price is approaching its longest consecutive decline in nearly 20 years, with investor concerns over its massive capital expenditures continuing to grow.

On Friday, local time, Amazon’s stock fell 0.8%. If it closes lower, it will mark the ninth consecutive trading day of decline, the longest streak since July 2006. The recent decline has exceeded 18%, with a market value shrinking by over $470 billion (IT House note: approximately 32.5 trillion RMB at current exchange rates), and the stock price dropping to its lowest point since May.

This decline is mainly driven by Amazon’s previously announced annual investment plan of $200 billion (approximately 1.38 trillion RMB at current exchange rates), which will be used for data centers, chips, and related equipment construction—significantly higher than market expectations.

Anthony Saglimbene, Chief Market Strategist at Ameriprise, said, “If the scale of spending causes cash flow to turn negative, it will be a clear risk signal. Investors are re-evaluating this.”

The market is increasingly sensitive to the high-intensity investments of tech giants in artificial intelligence. Microsoft and Alphabet’s stock prices are also under pressure. Amazon, Alphabet, Microsoft, and Meta are expected to have combined capital expenditures of about $650 billion (approximately 4.49 trillion RMB at current exchange rates) by 2026.

Saglimbene pointed out that if the massive investments by tech giants lead to weakened or even negative cash flow, the valuation logic for these companies will change, especially when market volatility or uncertainties in AI development paths arise.

Amazon has declined about 17% this month, potentially marking its largest monthly drop since April 2022. During the same period, the Nasdaq 100 index fell 3.2%.

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