Amazon's stock drops $450B in 9-day slide
Amazon's stock finally edged up 1% on Tuesday, snapping a rough nine-day slide that erased over $450 billion in value—the company's steepest drop since 2006.
The selloff started as investors worried about Amazon's massive $200 billion bet on AI infrastructure.
Analysts still see big potential
Even after the dip, analysts still see big potential here.
Shares had fallen about 18% between February 2 and last Friday, but analysts hold a Moderate Buy consensus—one Strong Buy, 53 Buy and 4 Hold—and price targets vary, with a consensus around $287.30 and the highest cited target about $360.
AI spending in focus
A lot comes down to AI spending. Some investors are skeptical about pouring so much cash into data centers for future AI growth.
But CEO Andy Jassy is confident—he says they'll double their capacity by 2027 to meet demand.
Plus, Amazon just posted strong quarterly revenue and solid profit margins, so now everyone's watching to see if these huge investments will pay off.