New York, Feb 8, 2026, 05:42 EST — Market closed
- Amazon shares slid 5.6% to close at $210.32 on Friday
- AI and cloud capex is suddenly ramping up, and investors are taking notice.
- The next triggers? Jobs data hits Feb. 11, with U.S. CPI following on Feb. 13.
Amazon.com Inc (AMZN.O) finished Friday’s session at $210.32, off 5.6%. Investors kept their attention on the mounting costs tied to the company’s AI expansion as the week wrapped up.
This shift is catching attention—investors now seem to see Big Tech’s artificial-intelligence investments as a short-term burden rather than a bonus. “The AI build-out trade … got too pricey,” said Andrew Wells, chief investment officer at SanJac Alpha. 1
The days of the “everything AI wins” play are fading fast. “The market is no longer tolerating spending for spending’s sake,” said Mark Hawtin, head of global equities at Liontrust. 2
Amazon is projecting roughly $200 billion in capital expenditures for 2026, CEO Andy Jassy said, citing “strong demand” and highlighting “AI” as a major force behind the ramp-up. The spending—capex, in industry lingo—goes to long-term assets like data centers, servers, and network equipment. 3
Amazon isn’t the only one feeling the heat. Amazon, Alphabet, Microsoft, and Meta together are set to spend over $630 billion this year on AI. But investors want answers—Morgan Stanley analysts say they’re “not forgiving” when it comes to heavy outlays without a tangible payoff in sight. Return on invested capital tells the story: it’s a quick read on how much profit companies squeeze out of each new dollar invested. 4
Amazon shares fell amid a sharp rebound for U.S. stocks Friday — the Dow punched past 50,000 for the first time, chipmakers soared on bets they’ll feed the next data center boom. “Real demand for AI products” is there, despite the choppy trade, said Baird investment strategy analyst Ross Mayfield. 5
Still, there’s a risk here: with capex running this high, free cash flow stays squeezed. That means any stumbles on execution, tougher cloud pricing, or a longer wait for generative AI to deliver could pinch even more.
When markets open Monday, eyes turn to AMZN. Investors are looking to see if the stock finds its footing and how analysts spin the company’s latest spending—will it be chalked up as essential for competing in cloud, or criticized as yet another blow to margins?
Outside of the company chatter, broader economic numbers might set the tone. The Bureau of Labor Statistics has the U.S. January jobs report penciled in for Feb. 11, followed by consumer price figures on Feb. 13. Both dates are listed as tentative, thanks to potential government service disruptions. 6
