9 consecutive declines! Amazon, which has the highest capital expenditure, falls into a bear market, investors "voting with their feet" for the Big 7 technology companies.

Amazon stock price fell for the ninth consecutive day. On Thursday, it entered a technical bear market, becoming the second company in the Mag7 to fall into a bear market, and continued to decline on Friday. Investors strongly resisted the aggressive AI spending plans of tech giants, leading to a significant decline in these star stocks. On Friday, Amazon's stock price closed at $198.79, down more than 23% from recent highs, officially breaking into a bear market threshold the day before on Thursday. Among the four largest cloud service providers, Amazon's planned capital expenditures for 2026 are the highest, reaching $200 billion. Amazon, Microsoft, Meta, and Alphabet are expected to spend a total of $650 billion in the field of AI in 2026. Meta may become the next member of the Mag7 to fall into a bear market, as of Friday's close, it has fallen by 19.6% from its high last year, just 0.4% away from the 20% threshold of a bear market. Despite Meta's fourth-quarter revenue and profits exceeding Wall Street expectations, increased AI spending and profit margin pressures have hit investor confidence. Microsoft was the first member of the Mag7 to enter a bear market. The company's stock fell into a bear market on January 29th, the day before the company announced that the growth of its Azure cloud business did not meet investor expectations. As of Friday's close, Microsoft's stock price had fallen by 27.8% from recent highs. Investors are rotating within the Mag7, highlighting the pressure on free cash flow Mike Treacy, Vice President of Risk at Apex Fintech Solutions, said that recent selling highlighted the widening differentiation among Mag7 members. Since last autumn, investors have pulled out of deals related to Microsoft, Nvidia, and Oracle's OpenAI and shifted their focus to Alphabet and Broadcom ecosystems. Treacy pointed out that Alphabet's vertically integrated technology stack partially offset concerns about overspending, shielding the stock from the most severe impact of tech stock sell-offs. Alphabet's stock price closed Thursday down 9.2% from recent highs. Treacy said that Google's self-sufficiency should attract a premium relative to other companies that may be affected by a negative impact in a certain part of the industry chain. Amazon, Microsoft, and Meta's stock prices have been hit harder because investors lack confidence in whether the AI spending of these companies will bring enough return on investment. For Amazon, the increase in capital expenditures could lead to negative free cash flow this year, meaning the company may need to start accessing the debt market to raise more capital. Treacy believes that the next significant catalyst for AI deals will be Nvidia's earnings report on February 25th. This performance report will show whether the AI frenzy is cooling down, or if Nvidia has successfully captured billions of dollars from its biggest customers investing in the field. This article is reprinted from "Wall Street View", written by Zhao Ying, Bao Yilong; edited by GMTEight: Chen Siyu.