Major U.S. technology stocks, including names like Amazon and Oracle, dropped sharply after investors reacted poorly to a wave of earnings reports and spending forecasts that revealed unprecedented capital expenditures on artificial intelligence infrastructure. Amazon’s announcement that it plans to spend roughly $200 billion on capital expenditures in 2026, far above Wall Street expectations, triggered a significant sell-off as shareholders grew concerned about the impact of such large outlays on near-term profitability and cash flow. At the same time, other tech giants — part of a broader trend of planned AI infrastructure investments totaling hundreds of billions of dollars across the industry — saw their stock prices weaken as markets questioned whether these massive expenditures will generate returns soon enough to justify the risk. The sell-off wiped out over $1 trillion in market value across major tech companies as investors rotated away from high-growth, capital-intensive firms toward more stable or cheaper assets, highlighting a shift in sentiment in which the excitement about AI’s long-term potential is now tempered by concerns about the cost and timing of realizing profits.
https://www.cnbc.com/2026/02/06/ai-sell-off-stocks-amazon-oracle.html
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