Amazon's stock drops 10% on $200B spending plan for 2026
Amazon's stock slid 10% after it revealed a bold $200 billion spending plan for 2026, even though Q4 revenues slightly beat expectations.
The big investment bump—mostly for AI data centers, chips, robotics, and low-earth-orbit satellites—sparked investor concern about the large near-term capital outlay, and the stock dropped about 10% in after-hours trading.
Amazon goes all in on AI, but investors are skittish
Amazon is betting huge on AI and future tech, planning to spend way more than rivals like Alphabet and Meta.
While this could set them up as a leader in AI, it also represents a large near-term capital outlay—a tradeoff that has Wall Street on edge.
AWS growth shows there's a method to Amazon's bold spending
Even with the market jitters, Amazon Web Services (AWS) had its best growth in over three years—up 24% year-over-year to $35.6 billion.
CEO Andy Jassy credited strong demand for AI workloads, showing Amazon is doubling down on what's working while taking some big risks for future growth.