Amazon stock fires rare technical signal after $470B tumble

Core Insights - Amazon's stock price has significantly declined following the announcement of a $200 billion spending projection for upgrading its AI-driven cloud data centers, raising concerns about the return on investment [1] - The forecast exceeded Wall Street's expectations by $50 billion, leading to increased competition with Google and Microsoft in the compute-power sector [2] - The stock's decline has resulted in a $470 billion reduction in Amazon's market capitalization, marking the longest losing streak since 2006 [2][4] Financial Metrics - Current stock price stands at $198.79, with a market capitalization of $2.13 trillion [9] - The forward price-to-earnings ratio is 24.5, and the price-to-sales ratio is 3 [9] - Total cash and equivalents amount to $123 billion, with 71.85 million shares short [10] Market Sentiment - The Relative Strength Index (RSI) indicates an oversold condition at 23.10, suggesting a potential for a short-term rally [8][10] - Historical context shows that previous significant investments, such as the creation of AWS, faced skepticism but ultimately proved successful [5][6]