Amazon's stock drops despite record profits due to massive spending
Business
Amazon just had a huge quarter, pulling in $21.2 billion in profit on $213.4 billion in sales.
But their stock still took an 11% dive on Thursday after CEO Andy Jassy announced plans to invest about $200 billion in capital expenditures in 2026, citing AI, chips, robotics, and low-earth orbit satellites—way more than anyone expected.
AWS is booming with 24% sales growth
Analysts thought Amazon would spend around $147 billion this year, so the jump caught everyone off guard.
Jassy says they're not going to be shy about investing in things we think are going to be important.
Meanwhile, Amazon Web Services (AWS) is booming with 24% sales growth, and new tools like the AI shopping assistant "Rufus" are helping boost online sales too.