Amazon Stock Plunges 8% Despite Revenue Beat as Company Plans Massive $200B AI Spending Spree
Summary
Amazon stock crashes 8% as the tech giant announces a staggering $200 billion AI spending plan for 2026, far exceeding analyst expectations of $146.6 billion, despite beating revenue forecasts and AWS posting its fastest growth in over three years at 24%.
Key Points
- Amazon stock plunges 8% after reporting mixed Q4 results with earnings per share of $1.95 missing the $1.97 estimate, though revenue beats expectations at $213.39 billion
- The company announces plans to spend $200 billion on capital expenditures in 2026, significantly higher than analyst expectations of $146.6 billion, primarily for AI infrastructure and data centers
- Amazon Web Services grows 24% in Q4, marking its fastest growth in 13 quarters, while the company lays off 16,000 corporate employees amid continued AI investment push