Amazon Shares Decline Amid Investor Concerns Over AI Investment Plans

Amazon shares experienced a 5.1% decline this week, contributing to an overall decrease of approximately 11% year-to-date. According to NS3.AI, this downturn reflects investor caution towards large-cap growth stocks. Despite Citi and JPMorgan increasing their price targets for Amazon to $285, market participants are primarily concerned about the company's planned $200 billion capital expenditure for AI by 2026 and its potential impact on future earnings.