Why Amazon.com Stock May Drop Soon | Trefis

Amazon.com (AMZN) has stumbled before. Its stock has plunged more than 30% within a span of less than 2 months on 3 occasions in recent years, wiping out billions in market value, and erasing massive gains in a single correction. If history is any guide, AMZN stock isn’t immune to sudden, sharp declines.

Specifically, we see these risks:

1. Regulatory Drag and Looming Antitrust Showdown
2. AI-Driven CapEx Burn Vaporizing Free Cash Flow
3. E-commerce Market Share Erosion from New Fronts

Risk 1: Regulatory Drag and Looming Antitrust Showdown

• Details: Forced business model changes impacting Prime and Marketplace profitability, Valuation multiple compression due to perpetual legal overhang
• Segment Affected: North America and International Retail
• Potential Timeline: Ongoing through 2026, with a major catalyst in Q4 2026
• Evidence: Core FTC antitrust trial targeting marketplace operations scheduled…