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Amazon stock slides 8% as 2026 capex guidance blows past expectations
| USA | economy

Amazon stock slides 8% as 2026 capex guidance blows past expectations

#Amazon #Capex #AWS #Earnings Report #Andy Jassy #Cloud Computing #AI Investment

📌 Key Takeaways

  • Amazon shares dropped over 9% after forecasting $200 billion in capital expenditures for 2026.
  • The 2026 spending guidance exceeded analyst expectations by approximately $54 billion.
  • AWS revenue grew 23.6% to $35.58 billion, signaling strong demand for AI and cloud infrastructure.
  • Total Q4 revenue hit $213.39 billion, beating expectations despite a slight miss on per-share earnings.

📖 Full Retelling

Amazon.com Inc. shares plummeted more than 9% in pre-market trading on February 6, 2026, after the e-commerce and cloud giant issued aggressive capital expenditure guidance that significantly exceeded Wall Street projections. During its fourth-quarter earnings report released the previous evening, the Seattle-based company revealed plans to spend approximately $200 billion in 2026 to bolster its artificial intelligence infrastructure, robotics, and satellite technology. This massive spending target shocked investors, as it sat nearly $54 billion above the analyst consensus of $146.11 billion, sparking fears over the high costs required to maintain a lead in the generative AI race. Despite the stock’s decline, Amazon's quarterly performance showed resilience in its core operations, reporting revenue of $213.39 billion, a 13.6% increase year-over-year. The Amazon Web Services (AWS) division was a primary bright spot, accelerating with a 23.6% revenue jump to $35.58 billion as demand for cloud-based AI tools surged. However, the company narrowly missed earnings-per-share estimates by one cent, reporting $1.95, which fueled concerns that the massive capital outlays might pressure short-term profitability even as the company scales its power capacity to double 2022 levels by 2027. Market analysts remain divided on the long-term implications of this spending surge. While some investors are rotating out of high-valuation tech stocks due to "AI fatigue" and concerns over immediate returns, Morgan Stanley and UBS analysts suggested that the market may be underestimating Amazon’s future cash flow. They argue that Amazon’s history of delivering high returns on invested capital justifies the $200 billion gamble, particularly as AWS outpaces other segments and the retail business improves operational efficiency through AI-driven assistants like Rufus.

🐦 Character Reactions (Tweets)

Tech Guru

Amazon just raised the bar for corporate spending so high, I wouldn't be surprised if Jeff Bezos starts the 2026 Space Race from his backyard. 🚀💸 #CapitalExpenditure #AIandBeyond

Wall Street Whiz

Looks like Amazon's 2026 capex forecast is proof that 'If you can’t beat them, spend infinitely more than them!' 💰💥 #AIOverload #StockMarketShenanigans

Cynical Analyst

Amazon's $200 billion spending spree screams 'We'll figure out how to profit later!' Perfectly timed right before the next AI movie marathon. 🎬👾 #AIandProfitability #FuturePlans

EconOracle

If Amazon’s capex were a person, it would be that friend who spends all their savings on a super fancy coffee machine and then expects to write a bestseller from home. ☕📚 #FinancialPriorities #AmazonInvestments

💬 Character Dialogue

geralt: Hmph, when will they learn? Spending excessively never brought a monster down without a fight.
asuka: Baka! They’re just throwing money like it's a game! Do they even know what they're doing?
geralt: Money doesn't defeat the beast, Asuka. Profit is a contract with the future.
glados: Ah, yes, the great Amazon gamble. It's almost adorable how they think throwing cash at AI will solve their problems. But have they considered investing in their employees' intellect? Although, judging by the state of their financial analysis, that might be asking too much.
asuka: Don't you dare underestimate my intelligence! I’m way more relevant than whatever they’re spending on!

🏷️ Themes

Corporate Finance, Artificial Intelligence, Stock Market

📚 Related People & Topics

Amazon Web Services

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...

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Amazon

Amazon

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Andy Jassy

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.

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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:

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📄 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 Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets 3 reasons why Bitcoin is falling (South Africa Philippines Nigeria) Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Author Anuron Mitra Earnings Published 02/05/2026, 04:08 PM Updated 02/06/2026, 04:08 AM Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations 18 AMZN -4.42% Investing.com -- Amazon.com (NASDAQ: AMZN ) on Thursday beat quarterly top-line estimates, but forecasted capital expenditures of about $200 billion for 2026, much higher than expected. Shares of the company slumped 9.3% in pre-market Friday trade. Discover more earnings insights at InvestingPro Amazon’s results come at a time when Wall Street is seeing a heavy rotation out of technology stocks into other sectors. Investors have shifted from a mindset where the broad technology sector was seen as benefiting from artificial intelligence to one where there will be specific winners and losers due to AI. Software companies have been identified as losers, and a slide in that sub-sector has bled into chipmakers and the broader landscape. Traders are also concerned about elevated valuations and massive spending plans. Amazon’s $200 billion outlook blew past the consensus figure of $146.11 billion. "AWS is accelerating with even faster growth ahead and Retail is delivering with improving efficiency. Yes, AMZN is investing (AWS, Retail, LEO), but it has a track record of showing ROIC, which leaves us bullish on this under-appreciated GenAI winner across," Morgan Stanley equity analyst Brian Nowak said in a note to clients. The guidance comes just a day after Google-parent Alphabet (NASDAQ: GOOGL ) stunned the Street with capital expenditure plans of its own of up to $185 billion in 2026....

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