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Amazon’s Stock Hits Its Worst Losing Streak in Nearly 20 Years — And AWS Is Back in the Spotlight

Amazon just wrapped up an eight-day losing streak — something we haven’t seen since the dot-com days. If you’ve been watching the company for a while, this probably feels like a bit of déjà vu, especially when AWS (Amazon Web Services) comes into the conversation. It’s like every time Amazon hits a rough patch, everyone starts debating whether AWS can keep carrying the entire company on its shoulders.

Here’s the thing: AWS has been both Amazon’s biggest strength and its biggest headache. For years, it’s been the crown jewel — growing fast, raking in profits, and offering a safety net when margins in the retail business got razor-thin. But lately, that safety net feels a little less sturdy. With companies tightening budgets and looking to cut costs, cloud spending is getting scrutinized like never before. I’ve even seen big enterprise clients negotiate AWS bills down by 20% or more this year alone.

On paper, Amazon’s earnings still look solid. But Wall Street is jittery. The big question is: how much of Amazon’s future depends on AWS? And if AWS growth slows down, can the rest of Amazon pick up the slack? That’s where the uncertainty kicks in.

There’s also a psychological side to this. Amazon’s retail side is huge but not exactly a cash machine—margins are thin, and rising shipping and logistics costs aren’t helping. Inflation’s still on everyone’s mind, which makes shoppers a bit cautious. Sure, Prime Day was a success, but it’s not enough to move the needle over the long haul. If AWS catches a cold, the rest of Amazon might start sneezing.

The cloud market overall is facing a reality check. During the pandemic, companies rushed headfirst into the cloud. Now, most are in “optimization mode,” combing through bills, shifting workloads, and putting new projects on hold. Microsoft and Google are feeling the pinch too, but Amazon — being the biggest player — gets hit the hardest. Don’t get me wrong, double-digit cloud growth isn’t dead, but it’s no longer a sure bet.

Amazon’s Diversification: A Work in Progress

One thing that doesn’t get talked about enough is Amazon’s push to diversify. They’re placing some big bets in advertising, logistics, and even healthcare. The ad business, quietly pulling in billions, looks promising. But these new ventures take time to scale and don’t have the same high-profit margins as AWS. So far, they haven’t convinced Wall Street that they can replace AWS’s growth anytime soon.

And remember, the “AWS bounce-back” story isn’t foolproof. In heavily regulated industries like finance or healthcare, cloud adoption can drag on for years because of compliance hurdles. Plus, in places like China and parts of Europe, local cloud providers hold strong positions — and they often navigate local rules better than Amazon can.

Why Amazon Still Has a Fighting Chance

That said, the pessimism isn’t the whole story. Amazon still has a massive war chest and a culture that thrives on reinvention. They can afford to ride out a few rough quarters. But the market wants to see a clear path forward that doesn’t lean so heavily on AWS. When investors get nervous about a company relying too much on one business, they tend to get impatient.

So what should you keep an eye on? How fast Amazon can make its newer businesses like advertising and healthcare meaningful profit centers. Those are long-term plays, and innovation at Amazon’s scale isn’t easy — most of the low-hanging fruit has already been picked.

The Labor Factor and What It Means for Margins

Another piece of the puzzle is Amazon’s huge warehouse workforce. Wages are creeping up, and while automation might help, it comes with its own challenges — both financial and political. If labor costs keep rising, retail margins could get squeezed even tighter. It’s an important risk that often gets lost in the cloud-focused chatter.

If you look back, the last time Amazon’s stock went through a rough patch like this was around 2014-2015. AWS was just starting to show its true potential, so the volatility made sense — but the company had plenty of room to grow. These days, competition is fiercer and expectations are sky-high. The market isn’t as forgiving as it once was.

The Takeaway

Amazon isn’t in crisis, but it’s definitely in a phase of change. The AWS déjà vu is real, and investors have every right to ask tough questions. Diversification is the name of the game — but time is running out. If Amazon can turn its ad business and other ventures into real profit centers, the story will change. If not, expect more of the same ups and downs.

At the end of the day, the real world is never as neat as the headlines suggest. Amazon’s next chapter will take patience, smart moves, and maybe a bit of luck. For now, this losing streak is a reminder that even giants stumble, and the future is never as predictable as the numbers say.

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