Amazon's Losing Streak Extends as AI Jitters Weigh on Tech

Shares of Amazon.com, Inc. AMZN slid for a ninth consecutive session on Feb. 13, marking one of the company’s longest losing streaks in nearly two decades. The prolonged pullback underscores mounting pressure on large-cap tech stocks as investors reassess valuations and growth expectations tied to the artificial intelligence (AI) boom.

The recent stretch of declines comes amid broader weakness in the tech-heavy Nasdaq, where several mega-cap names have faced heightened volatility. Market participants have grown more cautious about whether aggressive spending on AI infrastructure and services will translate into near-term returns. That skepticism has prompted a rotation away from high-growth names that had previously led the market higher.

Amazon, part of the Zacks Internet - Commerce industry, and widely viewed as a bellwether for both consumer spending and cloud computing trends, has not been immune to the shift in sentiment. Its cloud division remains central to AI development through data center expansion and enterprise services, placing the stock squarely in the crosshairs of investors reevaluating exposure to AI-linked plays. As risk appetite cooled, traders trimmed positions in some of the market’s most widely held technology companies.

Despite the recent weakness, extended losing streaks are relatively rare for Amazon and often reflect broader macro or sector-driven forces rather than company-specific developments. The current downturn highlights how quickly momentum can reverse when sentiment shifts, particularly in richly valued segments of the market. For now, Amazon’s nine-day slide serves as a reminder that even dominant tech giants are vulnerable during periods of recalibration on Wall Street.

While near-term performance may remain volatile as investors continue reassessing AI-related spending and broader tech valuations, AMZN’s diversified business model and strong cloud positioning could support a rebound once sector sentiment stabilizes.

Since its Feb. 2 closing of $242.96 per share, AMZN’s stock has plunged 18.2%. While its Zacks sub-industry has shrunk 15.9% in the period, two of AMZN’s peers, Alibaba Group Holding Limited BABA and 1stdibs.Com, Inc. DIBS have fallen 7.5% and 3.3%, respectively. BABA has a Zacks Rank #5 (Strong Sell), and AMZN and DIBS carry a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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