New York, Feb 16, 2026, 15:45 EST — The market has closed.
- Amazon shares have dropped roughly 13.9% in 2026, with investors uneasy over how much Big Tech is pouring into AI—and what they’re getting back.
- Presidents Day has U.S. stock markets closed, with trading set to pick back up Tuesday.
- Amazon’s outlays, cash flow, plus this week’s Fed minutes and U.S. numbers are all on traders’ radar.
Amazon.com shares face Tuesday’s open with investors questioning the payoff from Big Tech’s aggressive AI investments. The stock is down around 13.85% for 2026, wiping out nearly $343 billion in market value and putting Amazon’s valuation at about $2.13 trillion, according to a Reuters analysis. (Reuters)
U.S. stock markets are shut Monday for Presidents Day—traders get a breather after the recent drop in some major tech stocks, with a shorter week ahead to navigate. Trading resumes Tuesday. (AP News)
Amazon finished Friday, Feb. 13 at $198.79, slipping 0.41% after swinging from $197.27 to $201.16 during the session. Roughly 66.3 million shares changed hands, Investing.com data show. (Investing)
The slide has had more to do with the hefty price tag of scaling up than with immediate demand shifts. Amazon told investors it’s planning roughly $200 billion in capital spending for 2026 — that’s money funneled into data centers, infrastructure and similar assets with a long shelf life. Free cash flow? Down to $11.2 billion for the last twelve months, the company’s latest earnings showed. For the first quarter, Amazon is projecting net sales between $173.5 billion and $178.5 billion, with operating income pegged anywhere from $16.5 billion to $21.5 billion. (SEC)
Amazon warned earlier this month that capital spending is set to soar over 50% this year, straining cash flow even as AWS posted better growth. “The market just dislikes the substantial amount of money that keeps getting put into capex,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. D.A. Davidson’s Gil Luria didn’t mince words: “Amazon has to invest at these levels,” he said. (Reuters)
Amazon isn’t the only one facing resistance. “The market is no longer tolerating spending for spending’s sake,” said Mark Hawtin, who heads global equities over at Liontrust. The comment captures how splits are emerging among major AI spenders, as investors now want to see real returns. (Investing)
The tide could turn quickly. Should cloud demand hold up and Amazon prove its new AI products are boosting revenue without eroding margins, the decline in shares may pause. On the other hand, if costs outpace sales or cloud faces heavier pricing pressure, investors might keep marking down the stock.
Macro risk isn’t going away. On Wednesday, traders will scan the Federal Reserve’s latest meeting minutes, then turn to U.S. inflation and growth figures as the week unfolds—hunting for signals on how much pressure richly priced tech could face if financial conditions tighten. (Investing)
Nvidia has its quarterly conference call lined up for Feb. 25, a date that tends to jolt sentiment throughout the AI supply chain and among the largest cloud players. (Nvidia)
