AI Bubble Fears Trigger Massive Amazon Sell-Off
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Amazon's stock value has dropped significantly, resulting in a $1 trillion market capitalization loss amid increasing investor fears that AI-related valuations may be too high. This decline is part of a broader sell-off driven by concerns of an overheated AI investment bubble.
This matters because it reveals how emerging technology optimism can inflate market valuations, which are vulnerable to rapid reversal when investor sentiment shifts, affecting corporate capital access and broader innovation trajectories.