Amazon Stock Slips Below Key Level On Rough Day For Cloud Hyperscaler Stocks

Amazon shares fell more than 2% and briefly slipped below their 200-day moving average as the market reassessed the outlook for hyperscale cloud and AI spending. The article says Microsoft, Alphabet and Meta also weakened, underscoring broad pressure across large cloud platforms. Investors are worried that scarce and expensive memory chips and other AI data-center components will keep capex elevated and squeeze margins. Micron’s upbeat results reinforced the view that DRAM and NAND supply remains tight. Amazon also announced an additional $13 billion investment in AI and cloud infrastructure in India, adding to spending concerns even as it expands capacity. Separately, EU regulators said AWS and Microsoft Azure should be treated as gatekeepers under the Digital Markets Act, which could bring stricter oversight. Amazon’s stock is now flat for 2026 and its relative strength rating has fallen sharply, reflecting weaker technical momentum and cooling enthusiasm around the AI trade.