New York, Feb 6, 2026, 15:05 (ET) — Regular session
- Shares slid roughly 7% in afternoon trading, following Amazon’s announcement of a significantly increased investment plan for 2026.
- Investors are watching to see if AI-fueled expansion can offset a rising cash burden.
- Up next: filings with additional detail, plus new U.S. macro data coming next week.
Amazon.com shares slid $15.56, or close to 7%, to $207.13 in Friday afternoon trading, after the company laid out a plan for about $200 billion in capital expenditures in 2026. The selloff took the stock as low as $200.44 during the session, putting nearly $200 billion in market cap on the line if the drop holds. “The magnitude of the spend is materially greater than consensus expected,” MoffettNathanson noted. 1
The market’s mood has flipped: investors aren’t just cheering AI dreams anymore—they’re watching the price tag. Capital expenditures—think data centers, servers—represent money tied up for years. When those numbers jump, cash returns can start to feel the pinch.
The AI boom is already sorting out the winners from those footing the bill. Chipmakers get to ride the wave of fresh orders, while cloud giants and big names like Amazon are stuck bankrolling the infrastructure—and then facing the challenge of showing it actually delivers returns.
Amazon posted a 14% jump in fourth-quarter net sales, hitting $213.4 billion, with AWS revenue up 24% to $35.6 billion. Net income landed at $21.2 billion, or $1.95 a share. Free cash flow over the past twelve months dropped to $11.2 billion. The company projected first-quarter operating income between $16.5 billion and $21.5 billion. CEO Andy Jassy said, “we expect to invest about $200 billion in capital expenditures across Amazon in 2026.” 2
Reuters said the $200 billion plan marks a leap of over 50% from $131 billion in 2025. Amazon shares slid 11.5% in after-hours trade on Thursday as the news hit. The company projected first-quarter operating income below the $22.04 billion Wall Street expected, and pointed to about $1 billion in additional yearly costs, partly from its Leo satellite internet unit. “The market just dislikes the substantial amount of money that keeps getting put into capex for these growth rates,” said Aptus Capital Advisors portfolio manager Dave Wagner. 3
The market was torn on Friday. Nvidia and several chipmakers caught a bid, with traders wagering that swelling AI budgets would mean more hardware orders down the line. But Amazon slipped, with investors focusing on the short-term cash drain. “There’s enough evidence that there’s real demand for AI products,” said Ross Mayfield, investment strategy analyst at Baird, though volatility remains a factor. 4
Analyst sentiment shifted as DA Davidson downgraded Amazon to Neutral from Buy and chopped the price target to $175, down from $300. The firm cited AWS “scrambling to catch up through escalating investment,” TheFly reported. 5
Amazon turned in its annual 10-K for the year ending Dec. 31, 2025, on Friday, according to a new filing. Investors digging into the report will be scanning for updates on spending plans, risks, and the pace of the company’s new investment ramp-up. 6
Even so, the risk here is easy to see. Should AI demand soften, or if pricing comes under pressure as competitors ramp up, a $200 billion investment could turn into a financial drag long before any profits appear. That’s the worry investors are now grappling with.
Next up, investors have their eyes on the U.S. January jobs data set for Feb. 11, followed by the January CPI numbers on Feb. 13. Both land at 8:30 a.m. ET. The focus: clues on consumer demand and where rates might be headed. 7
