Amazon sees 50% boost to capital spending this year, shares tumble
#Amazon #Andy Jassy #Capex #AWS #Artificial Intelligence #Stock Market #Tech Earnings
📌 Key Takeaways
- Amazon plans to increase capital spending by over 50%, reaching approximately $200 billion in 2026.
- Company shares fell by as much as 11.5% in after-hours trading due to concerns over high AI investment costs.
- AWS revenue grew 24% to $35.6 billion, remaining a critical profit driver despite heavy infrastructure spending.
- The company is closing Fresh and Go physical stores while investing heavily in the Leo satellite internet business.
📖 Full Retelling
🐦 Character Reactions (Tweets)
Tech InvestorAmazon's new motto: 'Why make a profit when you can just burn $200 billion on AI and pray for the best? #InvestingInHope'
Cautious ConsumerNote to self: Next time I order a book on Amazon, make sure it's not packaged with their 2026 spending projections. #BriefAusterity
Retail RebelAmazon's like that friend who spends their last dollar on a fancy AI gadget while still borrowing your Netflix password. Priorities, right? #CapitalismGoals
Cynical AnalystThe only 'cloud' most investors see right now is the dark storm above Amazon's stock. Can someone turn down the AI hype machine, please? #InvestorsBeware
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🏷️ Themes
Artificial Intelligence, Corporate Finance, Cloud Computing
📚 Related People & Topics
Amazon Web Services
On-demand cloud computing provider
Amazon Web Services, Inc. (AWS) is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies, and governments, on a metered, pay-as-you-go basis. Clients often use this in combination with autoscaling (a process that allows a client to use more compu...
Andy Jassy
American business executive (born 1968)
Andrew R. Jassy (born January 13, 1968) is an American business executive who is the president and chief executive officer of Amazon since July 2021, succeeding founder Jeff Bezos, who remains executive chairman. Jassy was SVP and CEO of Amazon Web Services from 2003 to 2021.
Artificial intelligence
Intelligence of machines
# Artificial Intelligence (AI) **Artificial Intelligence (AI)** is a specialized field of computer science dedicated to the development and study of computational systems capable of performing tasks typically associated with human intelligence. These tasks include learning, reasoning, problem-solvi...
Capital expenditure
Costs associated with the fixed assets
Capital expenditure or capital expense (abbreviated capex, CAPEX, or CapEx) is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land. It is considered a capital expenditure when the asset is newly purchased...
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Connections for Amazon Web Services:
- 🌐 Artificial intelligence (2 shared articles)
- 🌐 Amazon (2 shared articles)
- 🌐 Cloud computing (1 shared articles)
- 🌐 Space-based data center (1 shared articles)
- 👤 Amazon Leo (1 shared articles)
- 👤 Andy Jassy (1 shared articles)
- 🌐 Capital expenditure (1 shared articles)
📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week 3 reasons why Bitcoin is falling Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets (South Africa Philippines Nigeria) Amazon sees 50% boost to capital spending this year, shares tumble Stock Markets Published 02/05/2026, 04:05 PM Updated 02/06/2026, 01:00 AM Amazon sees 50% boost to capital spending this year, shares tumble 0 MSFT -4.95% GOOGL -0.54% AMZN -4.42% META 0.18% By Greg Bensinger and Deborah Mary Sophia Feb 5 - Amazon on Thursday projected a surge of more than 50% in capital expenditures this year, joining its peers in a spending spree to build out artificial-intelligence infrastructure, and sending its shares down 11.5% in after-hours trading. As the shares sputtered on news that Amazon would be pumping $200 billion into boosting its AI efforts in 2026, CEO Andy Jassy struck a defensive tone during the company’s call with investors, a contrast to the more self-assured Alphabet executives on Wednesday as Google showed resilience in developing AI software. "As a reminder," said Jassy, referring to the results of cloud platform Amazon Web Services, "it’s very different having 24% year-over-year growth on $142 billion annualized run rate, than to have a higher-percentage growth on a meaningfully smaller base, which is the case with our competitors." AWS’s revenue grew to $35.6 billion in the December quarter, while Google Cloud grew 48% to $17.75 billion. Microsoft ’s Azure surged 39% in the same period. Amazon’s results are the latest sign that Big Tech will not be hitting the brakes any time soon on hefty AI investments. Amazon shares closed down 4.4% during regular trading as worries deepened about the enormous cost of the artificial-intelligence boom. The top four hyperscalers - Amazon, Microsoft , Google and Meta - are expected to collectiv...