On November 18, 2025, Amazon.com Inc (AMZN) shares fell sharply, closing at $222.55, down 4.43%. The decline followed a downgrade from Rothschild & Co Redburn, which shifted its rating from Buy to Neutral and maintained a $250 price target, citing concerns over weaker pricing power and higher capital intensity in generative AI investments. The analyst highlighted risks of overbuilding AI infrastructure and less favorable margin assumptions compared to earlier cloud cycles. Broader tech sector weakness and worries about AI stock valuations contributed to the negative sentiment, despite other analysts maintaining bullish long-term targets for Amazon. This move was widely reported by tier-1 and financial news outlets, underscoring the downgrade's impact on investor confidence.
Amazon Stock Drops Over 4% After Rothschild & Co Downgrade Amid AI Margin Concerns
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