On November 18, 2025, Amazon.com Inc (AMZN) stock closed at $222.55, down 4.43%, following a downgrade from Rothschild & Co Redburn, which shifted its rating from Buy to Neutral while maintaining a $250 price target. The analyst cited concerns about weaker pricing power and higher capital intensity in generative AI, suggesting increased risk of overbuilding and margin pressure for Amazon and peers. The downgrade and broader tech sector weakness, driven by worries that AI stocks are overpriced and the Nasdaq 100's recent selloff, contributed to Amazon's sharp decline. Other analysts remain bullish, but the downgrade was the primary catalyst for the day's move.
Amazon Stock Drops Over 4% After Rothschild & Co Downgrade Amid AI Margin Concerns
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