Just noticed something wild about Amazon's chart. The stock has now dropped for nine straight trading days, which apparently hasn't happened since July 2006. Back then, if you held through that dip, Amazon absolutely ripped 128% over the following year. Obviously doesn't mean history repeats, but interesting to see it happening again after 20 years.

The reason everyone's freaking out right now is the capex guidance. Amazon just told investors they're dropping $200 billion on AI infrastructure in 2026, which is a massive jump from the $128 billion they spent in 2025. That's a 56% increase, and the market initially reacted poorly. But here's the thing - AWS just posted 24% revenue growth in Q4, fastest pace in over a decade. AWS is also seeing triple-digit growth in their custom chip business now hitting over $10 billion in annual run rate. These AI investments are already showing real returns.

Looking at the fundamentals, Amazon's core business is still solid. E-commerce advertising grew 23%, cloud services up 24%, and even their core retail segment holding steady. The company's operating margins are actually expanding when you strip out one-time charges. Wall Street has zero sell ratings on this, with average price target around $285 suggesting 43% upside from current levels. Analysts are modeling 15% earnings growth through 2027, which makes the current 28x earnings multiple look pretty reasonable honestly.

So yeah, nine-day losing streak since 2006 is notable, but the selloff looks overdone given what AWS is actually doing with AI. The capex spend is real, but the revenue acceleration is there too. Just a thought while watching this play out.