Amazon’s Extreme AI Spending Sends Stock to Worst Month in Years

Shares of the e-commerce and cloud computing giant plunged 12% in February, their worst month since December 2022, as Wall Street takes an increasingly jaundiced view of the company’s aggressive AI spending plans. Not only are the capital expenditures eating into Amazon’s free cash flow, but market pros are growing impatient about when they’ll pay off in dramatic fashion. The stock also was the worst performer of the so-called Magnificent Seven technology behemoths last month and among the 40 weakest companies in the S&P 500.