Amazon shares have fallen 13% and entered correction territory, triggering widespread debate among traders about whether to sell or hold. The pullback follows the company’s plan to invest nearly $200 billion in capital spending this year, primarily directed at AWS data centers and AI infrastructure. However, first-quarter 2026 results show revenue reached $181.5 billion, up 17% year-over-year, with a record operating margin of 13.1%. AWS growth accelerated to 28%, the fastest rate in 15 quarters. CEO Andy Jassy highlighted a $364 billion backlog, excluding a recent deal with Anthropic valued at over $100 billion. Wall Street price targets average around $285, suggesting the sell-off may not reflect underlying performance.
Amazon shares have dropped 13% and entered correction territory, stirring debate across trading forums about whether to sell or hold. The decline follows the company’s plan to invest nearly $200 billion in capital spending this year, much of it directed at AWS data centers and AI chips.
Revenue for the first quarter of 2026 reached $181.5 billion, up 17% year-over-year and ahead of analyst expectations. Operating margin hit a record 13.1%.
CEO Andy Jassy stated, AWS, growth continued to accelerate, up 28% year-over-year, the fastest growth rate in 15 quarters. He also addressed the company’s backlog, saying, The backlog for Q1 is $364 billion. That does not include the recent deal that we announced with Anthropic for over $100 billion.
Jassy added, We have never seen a technology grow as rapidly as AI. Wall Street’s Amazon stock forecast remains bullish, with price targets averaging around $285.
Loop Capital, TD Cowen, and Barclays have backed a $300 target. Q2 guidance points to $194 billion to $199 billion in sales.
The $364 billion backlog and accelerating AWS growth suggest the sell-off may not reflect the company’s underlying performance. The decision to sell or hold ultimately depends on individual portfolio allocation and investment horizon.
