New York, February 9, 2026, 09:32 EST — Regular session underway.
- Amazon shares slid 5.6%, dropping to $210.32 right after the open.
- AWS has struck a fresh chip-supply agreement with STMicro, with warrants linked to future buying commitments baked in.
- Traders are eyeing the U.S. jobs report coming up Feb. 11, with CPI numbers set to follow on Feb. 13.
Amazon.com shares slid 5.6% to $210.32 at the open Monday, deepening recent losses as investors scrutinize the company’s heavy spending on AI infrastructure.
Money’s flowing out of some of the big tech giants and into more affordable pockets of the market, as investors weigh just how soon AI investments will actually pay off. “We’re instead seeing a wave of aggressive buying of altogether different stocks,” Tim Murray, capital markets strategist at T. Rowe Price, told Reuters. 1
Amazon’s cloud business drew renewed attention after STMicroelectronics, the European chipmaker, announced it’s deepening a “multi-year, multi-billion USD” commercial deal with Amazon Web Services. The pact will see ST supplying semiconductors for AWS’s cloud and AI data centers. “This strategic engagement establishes ST as an important supplier to AWS and validates the strength of our innovation,” said ST CEO Jean-Marc Chery. 2
ST disclosed that AWS received warrants giving it the option to purchase as many as 24.8 million ST ordinary shares, with vesting staggered and mainly linked to AWS’s spend on ST’s products and services. The initial strike price sits at $28.38 a share. 3
Investors are factoring in supply-chain dependencies alongside the hefty price tag attached to Amazon’s future plans. CEO Andy Jassy put a number on it: “We expect to invest about $200 billion in capital expenditures across Amazon in 2026,” he said in the latest results statement. That figure covers spending on big-ticket items like data centers and chips. The company also flagged that trailing-12-month free cash flow dropped to $11.2 billion, with the slide largely traced to stepped-up property and equipment spending linked to AI. 4
Analysts aren’t sugarcoating it: the price tag narrows the margin for error. “The magnitude of the spend is materially greater than consensus expected,” said MoffettNathanson analysts in a note quoted by Reuters, after Amazon rolled out its $200 billion plan. They also highlighted AWS revenue growth lagging behind both Microsoft’s Azure and Google Cloud. 5
Early Monday saw Amazon’s cloud competitors heading in different directions: Microsoft gained 1.8%, but Alphabet dropped 2.5%. The group’s split performance highlights how investors are rethinking their bets on AI spending.
Big Tech’s main concern right now: can cash flow match the pace of expansion? According to the Financial Times, firms like Amazon and Alphabet are spending on investments faster than their operating cash flow is coming in. That’s forcing some tough choices between shareholder payouts, cash reserves, and fresh debt. 6
Still, it’s not tough to see the risks piling up. Should demand for cloud capacity wane or payback periods drag out, heavier capital spending could squeeze margins, leaving the stock exposed to moves in rates and risk-off sentiment. On top of that, Amazon’s under the microscope from regulators—a German cartel office has cracked down on its marketplace price controls, hitting the company with an initial €59 million ($69.5 million) penalty. Amazon plans to fight the decision. 7
Next up: the focus shifts to the macro front. The U.S. Labor Department has the January employment numbers lined up for Wednesday, Feb. 11, with the January CPI set to land that Friday, Feb. 13. Both data drops carry the potential to jolt rate expectations — and that heads straight into growth-stock valuations, Amazon included. 8
