tech

February 5, 2026

Amazon stock falls 10% on $200 billion spending forecast, earnings miss

Investors are expected to focus on cloud growth, AI spending and the recent layoffs in Amazon's corporate workforce.

Amazon stock falls 10% on $200 billion spending forecast, earnings miss

TL;DR

  • Amazon projects capital expenditures to reach $200 billion in 2026, significantly higher than the $146.6 billion analysts expected.
  • The increased spending is driven by investments in data centers and infrastructure to support artificial intelligence demand.
  • Amazon Web Services revenue grew 24% in the fourth quarter, exceeding analyst estimates.
  • Other tech companies like Google and Meta are also announcing substantial investments in AI infrastructure.

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