AMZN Plunges 8.5% as $200B AI Bet Shifts Investor Focus

Amazon.com (AMZN) stock news: 8.5% pre-market drop raises questions

Amazon.com (Nasdaq: AMZN) stock plunged nearly 8.5% in pre-market trading on February 6, 2026. That’s an eye-catching move for one of the world’s most valuable companies. While Amazon’s shares have had their share of volatility, a single-session drop of this magnitude deserves closer scrutiny.

The move coincided with the company’s Q4 earnings report and a major spending plan for 2026. Investors were hit with a dual whammy: disappointing near-term guidance and a massive investment pledge that raised questions about near-term returns.

What’s driving the AMZN stock selloff today?

The primary catalyst for the drop was Amazon’s announcement of a $200 billion capital spending plan for 2026—most of it directed toward AI infrastructure, data centers, and new technology projects. While such a commitment might sound impressive, it signals a significant shift in capital allocation away from profit growth in favor of long-term infrastructure and innovation.

In practice, this kind of move often rattles investors who are more focused on short- to mid-term returns. That’s especially true if the spending is higher than expected, as was the case here. The market is now asking: when will this investment pay off? And is it worth the near-term drag on earnings?

To put numbers on it, AMZN closed at $222.69 the previous day and is now trading at $203.87 in pre-market—over $18 a share lost. That’s not just a correction—it’s a bearish signal.

What to watch for AMZN support and resistance levels

From a technical perspective, Amazon is breaking out of its recent consolidation range and testing the lower end of its 60-day price band. The stock is currently below both the 20-day and 50-day moving averages (239.79 and 233.58, respectively), which isn’t a great sign for near-term momentum.

Right now, the nearest key level is around $204.00—both a resistance and support level, which is unusual but not unheard of. If the stock breaks below that level, it could signal a deeper pullback or even a reversal of the recent upward trend.

Put differently, this is a critical juncture for AMZN. If the selloff accelerates and volume picks up, the stock could continue down toward the 20-day low of $226.88—or even lower if sentiment deteriorates further. On the flip side, if the stock stabilizes near $204.00 and volume shows signs of reversal, we might see a retest of higher levels in the coming days.

At the end of the day, the immediate focus should be on whether AMZN can hold above $204.00. That’s the first major technical hurdle—and it will be a key barometer for market confidence in the company’s near-term prospects.