Amazon Shares Drop 4% After AI Spending Plans and Soft Sales Forecast

According to Market Briefs, Amazon (AMZN) shares took a 4% hit on Friday after the company revealed plans to spend more than $100 billion this year on artificial intelligence. The announcement, coupled with a softer-than-expected sales forecast, led some analysts to adjust their price targets, despite maintaining an overall bullish outlook on the stock’s long-term trajectory.

The market, which was flirting with all-time highs on Thursday, saw a widespread tech sell-off by Friday. Amazon led the downturn, followed by other “Magnificent Seven” giants like Google (GOOG) and Apple (AAPL -2.40%), both experiencing losses.

The lone bright spot? Meta (META), which closed in the green for the 15th consecutive day, marking the longest winning streak in the company’s history.

Despite Amazon’s dip, the stock has still gained nearly a third of its value over the past year. With AI investments ramping up across the tech industry, investors remain watchful of how Big Tech balances growth and spending in an increasingly competitive landscape.