Amazon (AMZN) stock slid Tuesday, pulling back further from the highs it reached earlier this month after a strong Q3 earnings report. The company issued $15 billion of bonds late Monday, as investors are growing leery about the huge sums tech giants are spending on AI infrastructure.
The transaction marked Amazon’s first bond sale since 2022. It continues a trend that has been Google parent Alphabet (GOOGL), Oracle (ORCL) and Facebook parent Meta Platforms (META) tap debt markets in recent weeks to fund massive data center buildout plans.
The bond deal will “support business investments, fund future capital expenditures, and repay upcoming debt maturities,” an Amazon spokesperson told Bloomberg.
Amazon’s bond sale comes as broader markets are slumping a fourth consecutive day, driven in large part by fears about valuations for stocks that benefit from AI. Amazon stock on Tuesday was downgraded to neutral from a previous buy by analysts at Rothschild & Co Redburn. The note…
https://www.investors.com/news/technology/amazon-stock-amzn-ai-bond-downgrade/
