Amazon just matched its longest losing streak in 20 years
Amazon shares marked their ninth straight day of losses — the company’s longest losing streak since 2006.
The milestone follows a fourth-quarter earnings miss, downbeat guidance, and a plan to spend a whopping $200 billion on capital expenditure this year.
Amazon is hoping that by spending big on AI infrastructure now, it will reap rewards from the technology later. Investors aren’t so sure.
Interestingly enough, the current situation sounds quite similar to the one Amazon was in two decades ago. Back then, Amazon endured a similar stretch as it was upping spending on tech and an online toy store — moves that would eat into its profits.
At the time, an asset manager told Bloomberg, “They want to capture as many eyeballs as they can on the Internet and be the go-to place on the Internet, but that’s costing them earnings, at least right now.”
Sound familiar? In case you’re wondering, Amazon stock has risen 14,849% since that quote.