New York, May 17, 2026, 14:05 (EDT)
- Amazon finished at $264.14 on Friday, off 1.15% for the day and down 3.13% for the week.
- Berkshire Hathaway said it has sold out of Amazon. Amazon is also facing a new consumer lawsuit.
- This week, Nvidia, Target, Walmart and Home Depot results are due, giving the market some reads on AI and on consumer demand.
Amazon.com Inc. faces more pressure going into Monday. A late Friday filing showed Berkshire Hathaway dropped its Amazon stake. There’s also a new proposed consumer class action tied to tariff costs. U.S. markets were closed for the weekend. Shares finished Friday down 1.15% at $264.14, off 3.13% for the week, but still up 14.44% since the start of the year.
Amazon’s 2026 rally is tied to optimism over its cloud business, Amazon Web Services, and hopes that big bets on artificial intelligence will pay off soon. But late last week, that view started to look shaky as oil prices climbed, Treasury yields rose, and investors pulled back from fast-growing tech stocks.
Nasdaq Composite lost 1.54% Friday, breaking a six-week run, while the S&P 500 put in its seventh weekly gain. “There’s a realization that the market had gotten way ahead of itself,” Kenny Polcari, chief market strategist at Slatestone Wealth, told Reuters. He said the “momentum AI trade” was driving investor focus. Reuters
Berkshire’s filing covers positions as of March 31, not moves from today’s session. The company reported it dumped a group of smaller holdings like Amazon, UnitedHealth, Visa, and Mastercard. It more than tripled its investment in Alphabet, a cloud and advertising rival.
Amazon’s latest numbers looked better than what showed up in Friday’s trading. The company reported first-quarter net sales up 17% to $181.5 billion in April. AWS sales jumped 28% to $37.6 billion. Operating income was $23.9 billion. CEO Andy Jassy said AWS had “our fastest growth in 15 quarters.” Amazon Investor Relations
Wall Street wants to know how much cash Amazon has to spend to keep growing. Capital expenditure, which is what Amazon puts into assets like data centers and chips, hit $44.2 billion in the first quarter, rising more than 76% from a year ago. Amazon is still aiming for its $200 billion AI investment target by 2026.
Amazon’s bigger AWS sales growth stands out, according to Jesse Cohen, a senior analyst at Investing.com, who told Reuters that customers are putting more AI workloads on the cloud. Amazon is guiding for current-quarter revenue between $194 billion and $199 billion, ahead of the $188.9 billion analyst average tracked by LSEG, Reuters said.
Retail is also in focus. Amazon is growing same-day delivery and moving further into groceries, where Walmart is still a main competitor. Home Depot, Target and Walmart report next week, which could help investors see where U.S. consumer demand and pricing stand. Nvidia is up on Wednesday, with results eyed for signs of AI spending.
Legal risk to Amazon is tough to value after consumers filed a lawsuit in federal court in Seattle on Friday. Shoppers are asking for refunds for what they claim were higher prices from tariffs ruled unlawful by the U.S. Supreme Court. The proposed class action says Amazon took in hundreds of millions in these charges. Amazon did not answer Reuters’ request for comment.
Several headwinds could hit at once. High yields could test investors’ patience with companies spending big before showing better cash flow. If Nvidia or big retailers stumble, Amazon may feel it in both its AI and consumer arms. And the tariff lawsuit getting bigger would mean more political and legal noise.
Amazon comes into Monday with a handful of moving parts. There’s good AWS growth, heavy AI spend, shares lagging this week, and news of Berkshire’s exit hitting after hours. The market has also shown less patience for expensive names lately. Monday’s early moves will tell if investors are leaning into any of that.
