Amazon has lost $450B in value during this historic losing streak (www.cnbc.com)

Amazon is facing a historic stock decline, with shares on the brink of a tenth consecutive day of losses, resulting in an estimated $450 billion reduction in market valuation. This downturn follows the company's announcement of a staggering $200 billion budget for artificial intelligence initiatives in the upcoming year, significantly higher than Wall Street's expectations. The market's unease stems from concerns around the implications of such heavy spending on free cash flows, particularly as Amazon's share price has dropped nearly 18% since February 2, marking its longest losing streak since 1997. The significant investment in AI is expected to fund essential infrastructure developments, including data centers, chips, and networking equipment, as Amazon aims to capitalize on cloud-based AI opportunities. CEO Andy Jassy and AWS leader Matt Garman have defended this strategy, indicating it will ultimately yield strong returns on capital. However, analysts caution that until Amazon can demonstrate tangible outcomes from this increased expenditure, investor confidence may remain shaky, putting pressure on the company to prove its financial viability amid escalating costs in the tech sector.