Amazon stock fell more than 20% from its November high, entering bear market territory after a Q4 earnings miss.
Reddit discussion circled Amazon's planned $200 billion in AI and data center spending, part of a broader 62% YoY jump in Big Tech capex.
Despite the selloff, sentiment on AMZN was 57% bullish and analysts maintained price targets near $285, pointing to a P/E of 28.
Amazon stock stepped into bear market territory on February 25 as shares fell below $200 for the first time since late 2024. The decline, which extends more than 20% from the November peak, followed a Q4 earnings miss and the company's announcement of $200 billion in planned AI and data center capital expenditures.
On Reddit, the conversation around 
Why Amazon's Capex Plan Dominated the Conversation
The selloff was not an isolated event. A Benzinga analysis published on the same day framed the broader Big Tech spending surge: hyperscaler capex is projected to hit $667 billion in 2026, up 62% year over year, consuming 92% of operating cash flows — a share higher than during the Dot-Com Boom. Amazon's $200 billion commitment represents roughly 30% of that total.
Retail investors on r/wallstreetbets and related communities debated whether Amazon's spending spree signals a generational bet on AI infrastructure or a risk of overinvestment. The central question, echoed by Benzinga, is whether AI-driven revenues will ultimately justify the extraordinary capex levels.
Analyst Take: Oversold or Value Trap?
Several same-day analyst notes argued the selloff has gone too far. An Investing.com analysis highlighted that Amazon's P/E ratio of 28 sits at multi-year lows, and technical support near $200 could signal a consolidation zone rather than the start of a prolonged downtrend. The same piece noted that analysts maintain price targets around $285, implying roughly 40% upside from current levels.
Supporting that view, a separate Investing.com column placed
At the same time, The Motley Fool published a piece noting that Amazon is among the major tech companies competing in quantum computing — a field it predicted could lose some of its 2025 hype in 2026 as commercial applications remain elusive.
What Reddit Is Watching Next
The Reddit sentiment score of 57% bullish suggests the user base has not capitulated. Many posts focused on Amazon's AWS acceleration, expanding margins, and revenue growth — the same fundamentals that analysts cite in their bull cases. The primary anxiety, visible in comment threads, is the sheer scale of near-term spending and whether the payoff timeline stretches too far.
The Motley Fool's account of Peter Thiel liquidating his entire equity portfolio (including positions in Nvidia, Tesla, Microsoft, and Apple) added a layer of macro unease, though the article ultimately advised retail investors to stay the course given the S&P 500's historical resilience.
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