Amazon's stock ended trading on Tuesday up 1.19% to close at $201.15, its first gain after a nine-session losing streak, as it tried to catch its breath following a sharp sell-off that worried investors.
Despite this rise, the stock is still moving within a bear market range, trading more than 20% below its 52-week high, reflecting continued pressure on the company.
During the period from February 2nd to the end of last week, the company lost about 18% of its market value, equivalent to more than $450 billion, in one of the biggest waves of decline the stock has seen in recent years.
The heavy selling came after the release of the fourth quarter results for 2025, which contained indicators that sparked widespread controversy among investors.
In its financial report, Amazon projected that its annual capital expenditure would increase by nearly 52% during 2026 to reach $200 billion, a figure that exceeds analysts' estimates by more than $50 billion.
The company said the bulk of this spending will be directed towards initiatives and technologies related to artificial intelligence, in a move aimed at enhancing its competitiveness in cloud computing and digital services.
Analysts believe that the huge bet on artificial intelligence may enhance Amazon's position in the long term, especially in the cloud services sector, but the increase in expenses of this magnitude raises questions about its impact on cash flows and profit margins in the short term, which explains the current volatility in the stock's performance.
