Wire
Amazon stock sinks on $200B capex plan
Follows up on Amazon's AI Overhaul Signals a Company at War with Itself
Amazon shares fell roughly 8% Friday after fourth-quarter earnings landed at $1.95 per share against a $1.97 estimate, despite record revenue of $213.4 billion. The official Q4 release carried the number that spooked the market: Andy Jassy expects “about $200 billion in capital expenditures across Amazon in 2026” — up from roughly $131 billion in 2025 — aimed at AI, chips, robotics, and low-earth-orbit satellites. AWS grew 24% year-over-year to $35.6 billion, its fastest pace in 13 quarters.
The tension is the one we flagged when Jassy declared Amazon’s AI inflection point: AWS’s reacceleration is real, but a 53% capex jump prices years of AI demand that still has to show up as revenue.