New York, Feb 5, 2026, 15:29 (EST) — Regular session
- Amazon shares dropped roughly 4.4% in afternoon trading, hitting a session low close to $220
- Germany’s cartel office has blocked Amazon from capping seller prices and is demanding roughly 59 million euros in repayments
- Amazon’s quarterly report is due after the closing bell, with investors zeroing in on AWS performance and spending trends
Amazon.com Inc (AMZN.O) shares dropped 4.4% to $222.65 Thursday afternoon, hit by a new German antitrust ruling. The setback came amid growing unease ahead of the company’s earnings report.
The drop followed a wider selloff in megacap tech shares after Alphabet signaled its AI spending might surge, stirring fresh questions about when the sector’s huge investments will pay off. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. (Reuters)
That context is crucial for Amazon today. The company reports after the bell, and its stock has been moving as if investors are voting on whether heavy spending still pays off or gets penalized.
Germany’s Bundeskartellamt has banned Amazon from enforcing price limits on online sellers in its German marketplace. Citing new powers from 2023, the regulator also ordered Amazon to return 59 million euros ($69.5 million), calling it a “disgorgement” of funds obtained through anti-competitive conduct. “Amazon competes directly with other marketplace retailers on its platform,” said cartel chief Andreas Mundt. The company has one month to file an appeal. (Reuters)
Amazon Germany’s country manager, Rocco Bräuniger, said the company plans to challenge the ruling, calling it inconsistent with EU competition law. “We will vigorously challenge the FCO’s conclusion,” he stated, adding that Amazon will continue business “as usual” while preparing its appeal. (EU About Amazon)
For markets, the issue isn’t just the fine—it’s the rules behind it. Once regulators dig into how a platform ranks offers and influences prices, investors begin to wonder what other shifts are coming—and how fast.
Wall Street is looking for about $211.5 billion in net sales for Amazon’s fourth quarter, with earnings around $1.96 per share, according to a Bloomberg consensus cited by Business Insider. Lee Sustar from Forrester pointed to Amazon’s $125 billion capital spending plan for 2025 as a major factor to watch in the report. Bank of America’s Justin Post expects AWS to deliver “22% y/y growth.” The report also notes Amazon is experimenting with faster delivery to compete with rivals like Walmart. (Business Insider)
There’s a clear downside risk here. If guidance signals increased spending without a strong AWS boost, or if Germany’s ruling sparks a tangled appeal process and forces changes in a crucial European market, the stock might remain under strain.
Amazon plans to release its earnings after the market closes, followed by a conference call at 5:00 p.m. ET. Investors will focus on AWS growth, capital expenditures, and potential impacts from the recent German ruling. (Nasdaq)
