Amazon.com's shares dropped more than 9 percent Friday, after analysts raised concerns about the high level of spending on technology, content and new warehouses.
At least 13 analysts cut their price targets on the stock after the company reported the increase in spending that overshadowed better-than-expected quarterly revenue.
"The continued significant investment cycle is not showing any signs of letting up ... ," Raymond James analysts said in a note. The brokerage cut its rating on the stock to "outperform" from "strong buy."
Amazon's cloud computing service is likely to face increasing price competition, the analysts said.