US EditionAmazon stock falls 10% on $200 billion spending forecast, earnings miss
Amazon plans to invest $200 billion in 2026 to expand AI infrastructure and cloud services amid strong enterprise demand and ongoing workforce reductions.
- On Thursday, Amazon said it will invest $200 billion in capital expenditures in 2026, focusing on cloud and AI infrastructure, triggering a steep after-hours sell-off with shares plunging double digits.
- Jassy said, 'If you look at the capital we're spending and intend to spend this year, it's predominantly in AWS,' with most capex targeting AI workloads and data‑center expansion, supported by $35.6 billion in fourth quarter revenue.
- Jassy pointed to technical metrics, saying most capital spending is on AI, not a `quixotic top-line grab`, and Project Rainier links 500,000 Trainium2 chips.
- Investors responded by forcing a >10% share slide after Amazon missed profit and guidance expectations, with JPMorgan's Doug Anmuth pressing for `financial guardrails` on the spending plan.
- The investment raises concerns about execution risk and depreciation as Amazon cuts around 16,000 corporate jobs, though Jassy called it an "extraordinarily unusual opportunity.
80 Articles
80 Articles
Amazon Shares Dive 8% After Announcing $200 Billion AI Spending Spree
Amazon revealed plans Thursday to invest $200 billion in 2026 on data centers, satellites, and infrastructure as part of its aggressive push into artificial intelligence, surpassing Wall Street projections by $50 billion. Shares dropped almost eight percent in Friday morning trading. The post Amazon Shares Dive 8% After Announcing $200 Billion AI Spending Spree appeared first on Breitbart.
Amazon shares sink as Big Tech's AI spending plans worry investors
Amazon's capex spending plans are expected to reach $200 billion in 2026. Alphabet said its capex could double from a year ago, while Meta and Microsoft has ramped up their spending plans. "While the rising capital intensity is not a surprise directionally, the magnitude of the spend is materially greater than consensus expected," MoffettNathanson analysts said in a note.
Wall Street Shook by Amazon Earnings Miss and $200 Billion AI Spending Shocker
Quick Read Amazon (AMZN) shares tumbled after it missed Q4 EPS estimates and unveiled a $200 billion 2026 capex plan. Amazon’s free cash flow declined year-over-year as infrastructure spending surged. Amazon’s AWS revenue saw the fastest growth rate since 2022. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted,…
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