Amazon's Losing Streak Extends as AI Jitters Weigh on Tech

Core Insights - Amazon.com, Inc. (AMZN) has experienced a significant decline, with shares falling for nine consecutive sessions, marking one of the longest losing streaks in nearly two decades [1][4][7] - The decline is part of a broader trend affecting large-cap tech stocks, particularly in the tech-heavy Nasdaq, as investors reassess valuations and growth expectations related to the artificial intelligence (AI) sector [2][3][7] Company Performance - Since February 2, 2023, AMZN's stock has dropped 18.2%, underperforming its sub-industry, which has decreased by 15.9%, and peers such as Alibaba Group Holding Limited (BABA) and 1stdibs.Com, Inc. (DIBS), which fell by 7.5% and 3.3%, respectively [6][7] - Amazon's cloud division plays a crucial role in AI development, making the stock particularly sensitive to shifts in investor sentiment regarding AI-related investments [3][5] Market Sentiment - The current downturn reflects a broader macroeconomic and sector-driven sentiment shift rather than specific issues within Amazon, highlighting the volatility that can occur in richly valued market segments [4][5] - As risk appetite diminishes, traders are reducing their positions in major technology companies, including Amazon, indicating a cautious approach to high-growth stocks [2][3]