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 reported fourth-quarter earnings after the bell as investors listened for AI spending updates while Deutsche Bank said the company fights an `AI laggard' perception.
- $125 billion in capex guidance underpins the company's plan to expand AI infrastructure, while CEO Andy Jassy said recent layoffs aim to reduce bureaucracy and speed innovation.
- Analysts polled by LSEG expect earnings per share of $1.97 and revenue of $211.33 billion, with Amazon Web Services at $34.93 billion and advertising at $21.16 billion, while looking for 21.4% fourth-quarter growth.
- OpenAI and Amazon are deepening ties, with the $38 billion cloud services agreement and talks about a potential Amazon investment up to $50 billion, CNBC reported Wednesday.
- Releasing new AI products across divisions, Amazon is positioning for consumer and cloud battles, shuttering Fresh and Go grocery chains during the fourth quarter while converting some stores to Whole Foods and continuing Fresh delivery.
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Amazon's e-commerce giant reported profits and revenues relatively in line with those expected, but like other major technology, it generated concern among investors by announcing a large capital spending for this year.The company had a share profit of US$1.95 in the fourth quarter versus the US$1.96 expected by the market.While its revenues totaled US$213.4 billion in the last three months of 2025, higher than the US$21,440 estimated by analyst…
Tech giants are outpacing themselves with huge investments in infrastructure for artificial intelligence. Amazon also wants to participate in satellites and robotics. That goes into money.
Amazon Shares Plunge After Q4 Earnings Results And Aggressive 2026 AI Spending Forecast
Amazon shares plunged after the tech giant reported mixed fourth-quarter earnings and issued an aggressive forecast for 2026 spending on AI. Revenue for the October-to-December period edged Wall Street analysts’ consensus estimates, rising 14% from the year-ago quarter to $213.4. Earnings per share missed the mark by a penny, coming in at $1.95 on a diluted basis. Amazon shares tumbled 4% in Thursday’s regular session and another 7% in after…
Shares close down 4.4% as worries deepen about enormous cost of AI boom
Amazon to Spend $200 Billion as It Accelerates AI Projects
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