Amazon stock is plummeting following the company’s fourth-quarter earnings report.
After beginning the year on a strong note, shares of e-commerce and cloud computing giant Amazon (AMZN 0.39%) have recently fallen off a cliff.
Let’s dig into why Amazon investors are running for the hills. Is now a good opportunity to buy the dip in Amazon, or is the stock turning into a falling knife?
Image source: Getty Images.
Why is Amazon stock dropping?
Over the last three years, Amazon has accelerated its capital expenditures (capex) significantly. Rising demand for artificial intelligence (AI) is causing Amazon to invest heavily across the infrastructure value chain — from building data centers, designing its own custom silicon, and complementing these chips with GPUs from Nvidia.
AMZN Capital Expenditures (TTM) data by YCharts
Amazon reported earnings for the fourth quarter and full year 2025 on Feb. 5. Prior to the report, Wall Street was expecting management to guide for around $150…
https://www.fool.com/investing/2026/02/13/is-amazon-stock-a-good-buy/
