Why This Dip Could Be Your Ticket to Riches

• Amazon (AMZN) stock fell for nine consecutive days. This matched Amazon’s worst streak from 2006 and erased $463B in market value.

• Amazon’s $200B capex guidance for 2026 exceeded analyst expectations by $50B. This raised concerns about potential negative free cash flow.

• Amazon’s AWS hit $142B in annual run-rate revenue with its fastest growth in three years.

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Amazon (NASDAQ:AMZN) has long set the pace in e-commerce, cloud computing through its AWS division, and as a leading force in artificial intelligence (AI) infrastructure. Yet the company is on the verge of a new record that investors neither expected nor wanted: If trends continue, Amazon will break its longest losing streak.

With Friday’s 0.4% tick lower to close at $198.79 per share, Amazon stock has now declined for nine consecutive days — matching its worst streak from all the way back in July 2006. If Monday sees another dip, it will surpass that mark. Investors may feel dismayed by the more than 18% fall since the streak began — erasing about $463 billion in market value — but in fact, they should be excited that Amazon is down so much.

The slide in Amazon’s stock picked up speed following its fourth-quarter earnings report earlier this month. While the company beat revenue expectations with $213.39 billion against estimates of $211.5 billion, it missed on adjusted earnings at $1.95 per share versus the forecasted $1.96. More critically, Amazon guided for capital expenditures of about $200 billion in 2026, focused on data centers, chips, and other AI-related equipment — far exceeding analysts’ expectations by more than $50 billion.

This spending plan raised alarms about potential negative free cash flow and higher future expenses from depreciating assets. Anthony Saglimbene, chief market strategist at Ameriprise, noted that such heavy outlays turning cash flow negative represent a major concern for investors.

Additionally, first-quarter guidance for net sales of $173.5 billion to $178.5 billion and operating income of $16.5 billion to $21.5 billion fell short of some market hopes, amplifying worries about the balance between growth and profitability during the AI push. Broader industry fears over escalating AI costs among tech giants also contributed to the sentiment, with Amazon’s slide mirroring pullbacks in peers like Microsoft (NASDAQ:MSFT).

Despite the current downturn, Amazon’s stock had been on a strong run, more than doubling in value over the past three years leading up to this decline — from around $100 per share in early 2023 to a peak of $254  in November. This recent 18% drop represents a healthy correction after such gains, offering a chance for investors to buy in at lower levels.