aws

It's so unusual! The U.S. inflation just dropped to 2.4% in January, the lowest in six months, and the Federal Reserve is almost waking up with a smile. Logically, the stock market should be celebrating, but unexpectedly, the e-commerce giant Amazon has just set the worst consecutive decline record in 20 years, falling back into the shadows of 2006. Since money is no longer becoming expensive, why is Wall Street choosing this moment to send Amazon into a bear market?

To find the answer, let's pull back time to 2006. That year, Amazon also saw a nine-day consecutive decline like now because Bezos wanted to spend money on something that no one understood at the time—AWS cloud computing. Everyone criticized him as crazy, saying he was wasting cash, and profits plummeted by 55%.

Twenty years later, history is repeating itself. Current CEO Jassy also wants to spend money, but this time the amount has become an astonishing $200 billion. What exactly is he betting on?

This time he is not betting on the cloud; he is betting on AI infrastructure. What does $200 billion mean? It could drain all of Amazon's cash reserves and even put the company under significant debt. Wall Street is not afraid of AI; it fears that these chips worth tens of thousands of dollars each will devalue to scrap metal before they can even break even.

So the third question: If AWS took 10 years to show returns back then, do investors today have the patience to wait another ten years in the current AI race?

Now that Microsoft and Amazon have both entered a technical bear market, does this indicate that the AI faith of the seven giants has already shown cracks? The CEOs are urging everyone to be patient, saying this is not blind investment but a future cash cow. At the end of the video, do you think Amazon will, like in 2006, dominate the next twenty years with AI again, or will it be completely crushed by this $200 billion?