Amazon (NASDAQ:AMZN), online retail, cloud services, and digital streaming leader, closed Tuesday at $201.15, up 1.19% after snapping a nine-day losing streak tied to concerns over its planned $200 billion AI investment program. The stock’s rebound is coming as coverage highlights the outsized profit contribution from Amazon Web Services and investors are watching how future AI-related capital spending shapes growth and margins.
Trading volume reached 67.9 million shares, coming in about 43% above compared with its three-month average of 47.5 million shares. Amazon IPO’d in 1997 and has grown 205,329% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) added 0.10% to finish Tuesday at 6,843, while the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 0.14%, closing at 22,578. Within e-commerce and cloud computing, industry peers Alibaba Group (NYSE:BABA) closed at $155.43 (-0.19%) and Walmart (NASDAQ:WMT) finished at $128.85 (-3.76%), underscoring divergent reactions to growth and investment risk across sector rivals.
What this means for investors
Amazon snapped a nine-day losing streak today that had erased nearly $450 billion in market value. Investors had been reacting to Amazon’s plan for a massive $200 billion capital expenditure plan for 2026, largely driven by investments in AI infrastructure and data centers.
Investors are now also balancing that spending against Amazon’s growing Amazon Web Services (AWS) segment and overall long-term growth prospects.
AWS revenue increased 24% in Q4 and delivered $128 billion of Amazon’s $717 billion full-year revenue lasts year, so investing to maintain its leadership position makes sense.
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Howard Smith has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Walmart. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
