Amazon stock just entered the danger zone
Amazon's stock has slipped into a perilous situation, with shares plummeting roughly 11% since the tech titan's August all-time high. This decline was compounded by a 2% drop on Tuesday, pushing the stock below its 100-day moving average. Despite this, analysts remain cautiously optimistic, pointing to Amazon's robust advertising platform, accelerating AI demand at AWS, and retail growth as reasons to maintain confidence.
However, the recent legal action by the Federal Trade Commission and 22 states against Amazon for allegedly overcharging advertisers by $20 billion from 2019 to the present has dampened investor spirits. Citi analyst Ronald Josey insists that investors should capitalize on the current market dip, citing Amazon's continued advertising success, AI growth, and retail expansion as key growth drivers.
Nonetheless, looming concerns over Amazon's significant capital expenditures for AI infrastructure have cast a shadow over the stock, leading to estimates of negative free cash flow in 2027 and 2028.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
