Amazon's Epic Losing Streak: Why This Dip Could Be Your Ticket to Riches

"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."

Amazon's stock has declined for nine consecutive trading days, matching its worst streak since July 2006, and has lost more than 18% since the slide began, erasing roughly $463 billion in market value. The decline accelerated after fourth-quarter results that beat revenue but missed adjusted earnings, and after guidance for about $200 billion in 2026 capital expenditures focused on data centers, chips, and AI-related equipment, roughly $50 billion above expectations. The large spending plan raised concerns about potential negative free cash flow and higher depreciation costs. First-quarter guidance for net sales and operating income also fell short of some hopes, heightening worries about growth versus profitability amid rising AI costs.

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