Amazon Is the Dow's Weakest Performer Friday as Stock Sinks Over 5%. Here's Why

Core Insights - Amazon's stock has declined approximately 9% since the beginning of the year, with a notable drop of over 5% on a day when the Dow Jones Industrial Average reached a record high [1][1][1] - The company reported profits that fell short of expectations and announced plans to spend up to $200 billion on capital expenditures this year, primarily focused on its cloud business and AI expansion [1][1][1] - Several Wall Street analysts have lowered their price targets for Amazon stock due to concerns about the company's spending, despite maintaining bullish ratings [1][1][1] Financial Performance - Amazon's recent profit report missed expectations, leading to a significant decline in stock price [1][1] - The company plans to invest heavily in AI and cloud infrastructure, with a capital expenditure forecast of up to $200 billion for the year [1][1] Analyst Reactions - Analysts from major firms such as Oppenheimer, HSBC, and JPMorgan have adjusted their price targets downward while still expressing confidence in Amazon's long-term growth potential [1][1][1] - Concerns have been raised about the need for tangible returns on investment before investors will fully support the company's aggressive spending plans [1][1]