Mag7 myths broke: 9-time fall, Amazon followed Microsoft to Bear City
Author:Zhao Wing, Po ChilongSee you on Wall Street
Amazon stock prices fell nine times, the longest in nearly 20 years。
After entering the technical bear market on Thursday and becoming the second company in Mag7 that fell into the bear market, Amazon stock prices continued to fall on Friday。
Strong investor resistance to radical AI spending schemes by technology giants has led to a significant setback in these star stocks。
On Friday, the Amazon stock price was $198.79, a decline of over 23 per cent over the recent high, and the previous Thursday officially broke the bear market threshold。
Of the four super-large cloud service providers, the Amazon had the highest planned capital expenditure in 2026, reaching $200 billion。
The Amazon, Microsoft, Meta and Alphabet companies expect capital expenditure in the area of AI to total $65 billion in 2026。
MetaAs of Friday, the closing point for the next Mag7 member to fall into Bear City was 19.6 per cent higher than last year, and the 20 per cent drop threshold for Bear City was only 0.4 per cent. Although Meta earned and earned more in the fourth quarter than Wall Street expected, increased AI spending and profit-rate pressures have strained investor confidence。
Microsoft is the first Mag7 member to enter Bear City. The company's stock price fell to bear market on January 29thThe Azure cloud business, which the company had announced the previous day, had not grown as expected by investors. As of Friday closing, Microsoft stock prices were 27.8 per cent lower than their recent highs。
(Amazon, Microsoft and Meta, nearly a year on track)
Investors rotate around Mag 7 and free cash pressure is high
According to Mike Treacy, Vice-President for Risks, Apex Fintech Solutions, recent sales highlight the growing polarization among Mag7 members。
Since the fall of last year, investors have withdrawn from OpenAI transactions related to Microsoft, Weidar and Oracle, favouring Alphabet and Motome ecosystems。
According to Treacy, Alphabet ' s vertically integrated technological stacks partially offset concerns about overspending and shielded the Unit from the worst impact of the sales of the Unit. Alphabet's stock price fell 9.2 per cent when closing Thursday at a higher point than recently。
Treacy states that Google ' s ability to become self-sufficient should receive a premium against other companies, which may be adversely affected by a link in the industrial chain。
The Amazon, Microsoft and Meta stock prices have been hit even harder because investors are not confident enough that these corporate AI expenditures will generate sufficient returns on investment。
For the Amazon, an increase in the level of capital expenditure could lead to a negative shift in its free cash flow this year, which means that companies need to start entering debt markets to raise more capital。
Treacy believes that the next important catalyst for the AI deal will be the financial paper released on February 25. This performance report will show whether the AI boom is cooling or whether Yvette has succeeded in capturing billions of dollars invested in this area by its largest client。
