"Shares of Amazon ( NASDAQ:AMZN) are up 0.5% this week, but retail investor sentiment tells a darker story. The company's social sentiment score dropped to negative 0.15 on Reddit and X over the past week, a sharp reversal from its neutral-bullish 0.12 average over the prior quarter. Among select tech peers, Amazon stands alone in sustained bearish sentiment while companies like NVIDIA ( NASDAQ:NVDA), Alphabet ( NASDAQ:GOOGL), Meta Platforms ( NASDAQ:META), and Apple ( NASDAQ:AAPL) enjoy bullish or neutral enthusiasm from the retail crowd."
"Layoffs and AI Anxiety Drive the Negativity A viral post on r/wallstreetbets captured the mood, racking up 2,744 upvotes and 406 comments in 24 hours. The post's title bluntly stated: "Amazon Just announces a new round of Lay-offs. Combined with AI driven lay-offs." The announcement hit AWS, retail, Prime Video, and HR divisions hardest, with CEO Andy Jassy framing the cuts as cultural changes driven by AI adoption rather than purely financial pressures."
"The Reddit discussion revealed deep concerns among retail investors. One highly-upvoted comment captured the anxiety: "AI is literally replacing entire departments now, not just individual roles. This is different from past layoff cycles." Another trader noted, "They're cutting 30K jobs while spending $35B on AI infrastructure - the math doesn't add up for workers but makes perfect sense for margins.""
Amazon shares rose 0.5% this week while social sentiment on Reddit and X fell to negative 0.15 from a prior-quarter average of 0.12. Retail investors reacted strongly to announced layoffs affecting AWS, retail, Prime Video, and HR, with CEO Andy Jassy attributing cuts to cultural shifts tied to AI adoption. Viral posts and comments expressed that AI may be replacing entire departments and questioned the logic of cutting 30,000 jobs while spending $35 billion on AI infrastructure. Capital expenditures surged 55% year-over-year to $35.1 billion, reducing free cash flow to $14.8 billion in Q3.
Read at 24/7 Wall St.
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