On November 18, 2025, Amazon.com Inc (AMZN) shares fell sharply after Rothschild & Co Redburn downgraded the stock from Buy to Neutral, citing concerns about weaker pricing power and higher capital intensity in the generative AI segment. The analyst warned that Amazon faces increased risk of overbuilding infrastructure as Gen-AI scales on a less efficient stack, raising doubts about future margins and profitability. This downgrade, combined with broader tech sector weakness and worries about AI stock valuations, led to a notable decline in AMZN's share price, closing at $222.55 (-4.43%) for the session. Other analysts remain bullish, but the downgrade and sector sentiment drove the day's movement.
Amazon Stock Drops After Rothschild & Co Downgrade on AI Margin Concerns
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