Amazon's stock price is on the verge of experiencing its longest losing streak in nearly 20 years, with a 0.8% drop recorded on Friday (local time). Should the downward trend persist at the close of trading, it would signify a nine-day consecutive decline, the most prolonged since July 2006. Lately, Amazon has witnessed a cumulative decrease exceeding 18%, resulting in a contraction of its market capitalization by over $470 billion. The current downturn in Amazon's stock price can be traced back to its unveiled annual investment blueprint of $200 billion, a figure that has surpassed market anticipations. Presently, the market is exhibiting heightened sensitivity towards the substantial investments being funneled into artificial intelligence by tech behemoths, with Microsoft and Alphabet's stock prices also feeling the strain.

Data indicates that Amazon, along with three other companies, is projected to incur capital expenditures totaling approximately $650 billion by 2026. There is a growing apprehension in the market that if these colossal investments culminate in diminished or negative cash flows, the valuation rationale for these firms could undergo a transformation. This month alone, Amazon has seen a cumulative drop of around 17%, potentially heralding its most significant monthly decline since April 2022. In comparison, the Nasdaq 100 Index has dipped by 3.2% over the same timeframe.