New York, February 4, 2026, 10:38 EST — Regular session
- Amazon shares slipped roughly 0.5% in early trading, underperforming the wider U.S. market.
- Amazon’s earnings report on Thursday is expected to spark a sharp move, traders say.
- Investors are focusing on recent AWS power limitations in Europe and a fresh push into the grocery sector.
Amazon.com, Inc. shares (AMZN.O) edged down 0.5% to $237.44 Wednesday morning, pulling back slightly after a steady run earlier in the week as investors braced for the company’s upcoming quarterly earnings.
The mood remains tight in big tech. Software and cloud shares have dropped for six sessions straight, leaving investors to wonder if heavy AI-related spending will boost profits or just pile on costs. 1
Amazon’s earnings report on Thursday stands out as a major event for megacaps this week. While the numbers will draw attention, investors will focus even more on the tone around AWS demand and expansion plans.
Options markets were signaling an expected swing of roughly 7% up or down around the earnings report, according to Investopedia. These contracts let investors buy or sell shares at a predetermined price, with their premiums typically revealing how nervous traders feel before key announcements. 2
Amazon highlights a bottleneck beyond chips on the infrastructure front. Pamela MacDougall, AWS head of energy markets and regulation in EMEA, noted that securing a power grid connection in Europe can drag on for “up to seven years,” a stark contrast to the roughly two years it takes to build a data center. 3
AWS CEO Matt Garman dismissed ideas of using space to ease data-center capacity constraints. He called orbital data centers “pretty far” from practical use and “just not economical” during remarks at a Cisco AI Summit, despite competitors like Google investigating early concepts. 4
Beyond its cloud ambitions, Amazon is stepping up its physical presence. Reuters revealed plans for a 225,000-square-foot grocery mega-store near Chicago, designed to double as a same-day delivery hub — aiming to slash “last-mile” delivery expenses. “Amazon knows that it needs to win in grocery,” said Amazon seller consultant Martin Heubel. Still, S&P Global analyst Bea Chiem warned, “It’s going to take some time for them to catch up.” 5
The stock slipped as the broader market showed a mixed picture: the S&P 500 tracker SPY held steady, but the Nasdaq-focused QQQ fell nearly 0.8%.
The risk is clear. If AWS growth or guidance disappoints, or if capital spending on long-lived assets like data centers comes in above forecasts, the stock could drop sharply. That’s especially true given traders are already paying a premium for downside protection.
Investors are bracing for Thursday’s update on AWS capacity, power, and build timelines, plus any clues about Amazon’s next moves in retail. That report will drive the rest of the week for AMZN.
