Amazon stock has fallen over 18% from its May peak and is tracking toward its first negative first-half performance since 2022, despite the company spending a record $200 billion（約32兆円） on AI infrastructure this year. Wall Street analysts have raised their price targets and maintain a strong buy stance, suggesting they believe the market has overshot the downside; retail traders, however, have been mostly bearish until recently, when some began viewing the stock as a value opportunity.
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Amazon shares have declined over 18% from their peak in early May and are down 1.7% year to date, putting the stock on track for its first negative return in a half-yearly period since 2022. The broader Magnificent Seven tech group has also struggled, with the Roundhill Magnificent Seven ETF (MAGS) down 7.4% year to date.
Why it matters
The underperformance is striking because Amazon has committed record capital spending this year—about $200 billion（約32兆円） on AI expansion, the highest capital expenditure in the tech sector—and maintains strong cloud leadership and a close relationship with AI startup Anthropic. Months of this investment have not translated into stock gains, frustrating investors even as Wall Street analysts have grown more optimistic, with 63 out of 67 analysts recommending 'Buy' or higher.
What to watch
Wall Street's consensus price target has risen from $284 at the end of April to $313 as of Thursday, implying 38% upside from the stock's last closing price. Retail traders on Stocktwits have mostly held bearish or neutral sentiment over the past three months, though some began viewing the stock as a buying opportunity on Thursday ahead of the close of the first half.
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