NEW YORK, February 17, 2026, 06:53 EST — Premarket
- AMZN edged down roughly 0.1% in premarket action, following a Friday close at $198.79 that capped a run of nine consecutive declines.
- Amazon’s $200 billion capital spending plan—centered around AI and cloud infrastructure—continues to draw investor attention.
- U.S. index futures slipped following the long holiday, as traders looked ahead to Friday’s PCE inflation numbers.
Amazon.com, Inc. slipped 0.1% to $198.60 ahead of the opening bell Tuesday, following a $198.79 close on Friday. Shares have now logged nine straight sessions in the red, off roughly 18% since February 2. 1
The shift is catching attention as investors recoil from Big Tech’s swelling AI expenses, with Amazon carrying significant index weight. Shares have dropped about 13.85% this year—wiping out nearly $343 billion in market cap—and Reuters pegs Amazon’s value close to $2.13 trillion. 2
U.S. stock index futures slipped early Tuesday, following the long holiday, as investors fretted about potential disruption from AI. By 05:46 a.m. ET, Nasdaq 100 futures had fallen 0.77%. Traders eyed Friday’s Supreme Court opinion day for a possible decision on President Donald Trump’s tariffs. Jefferies economist Mohit Kumar described the action as a rotation, not a “risk-off” move. Meanwhile, the market is bracing for remarks from Fed Governor Michael Barr and San Francisco Fed President Mary Daly. 3
Amazon on Feb. 5 pegged its 2026 capex at around $200 billion, pointing to big spends on data centers, chips, and servers—most of it fueling AI and cloud. For the first quarter, the company projected operating income in a range of $16.5 billion to $21.5 billion. AWS revenue for the December period landed at $35.6 billion, up 24%. CEO Andy Jassy called the investments a route to a “strong long-term return on invested capital,” though free cash flow slipped to $11.2 billion over the last 12 months. 4
Wall Street’s reaction to the spending plan was harsh—shares tumbled 11.5% in after-hours trading when the forecast landed earlier this month. That plan would push spending more than 50% above the $131 billion Amazon shelled out in 2025. AWS is responsible for over 60% of Amazon’s operating profit, so investors are watching closely to see how fast the company can put its new cloud capacity to work. “Amazon has to invest at these levels just to stay in the race,” said D.A. Davidson analyst Gil Luria, with the company locked in competition against Microsoft and Alphabet in the cloud space. 5
Some analysts are drawing parallels between the current AI frenzy and the dot-com period, when companies shelled out big money for infrastructure long before revenue followed. “The magnitude of the spend is materially greater than consensus expected,” MoffettNathanson noted. Russ Mould at AJ Bell pointed out that investors are drifting away from stocks where it’s “easier to disappoint.” Hyperscalers, he added, are ditching their old asset-light approach for far more aggressive outlays. 6
Amazon shares tracked the early moves in big tech, but investors wasted little time selling into strength. There’s still plenty of push and pull—AI demand feels tangible, though costs are ballooning.
Attention now turns to rates and inflation readings. The personal consumption expenditures (PCE) price index, the inflation metric watched most closely by the Federal Reserve, lands Feb. 20. Any unexpected numbers in that report could shake up growth stocks in a hurry. 7
The risk is straightforward: Should corporate clients hit pause on AI initiatives, or if cloud expansion loses steam even as costs remain high, cash flow could feel the squeeze longer than the market is banking on.
AMZN traders are now looking ahead to Friday’s Feb. 20 PCE report—rate-cut expectations will hinge on that, and futures suggest a tentative start. After the data, the focus swings right back to AWS. If demand and margins don’t start lining up with that $200 billion buildout, the stock could struggle.
