New York, Feb 6, 2026, 08:24 EST — Premarket
- Amazon shares dropped 4.6% in premarket action, slipping to $222.69.
- A $200 billion capex plan through 2026 is intensifying investor scrutiny on Big Tech’s AI investments and their near-term returns.
- Traders will zero in on the U.S. jobs report at 8:30 a.m. ET and the opening bell for cues.
Amazon.com shares dropped 4.6% in premarket trading Friday, hitting $222.69 following a sharp rise in the company’s planned spending that unsettled investors. The stock had closed at $233.30.
This isn’t just about a single quarter; it’s about what follows. Investors have been betting heavily on AI for months, but now the market is refocusing on costs — and questioning when the returns will actually materialize.
Amazon’s move to boost capital expenditures comes at a time when every line of Big Tech’s budgets is under scrutiny. MoffettNathanson analysts flagged that the scale of Amazon’s spending “is materially greater than consensus expected.” Amazon justified the hike by highlighting faster growth at AWS, noting its cloud division is expanding from a far bigger base. 1
Amazon outlined a massive jump in capital spending for 2026, forecasting about $200 billion—up sharply from $131 billion this year. The stock tumbled 11.5% in after-hours trading, slipping 4.4% during the regular session. “The market just dislikes the substantial amount of money,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. Analyst Gil Luria at D.A. Davidson added that Amazon needs to spend at this scale “just to stay in the race.” 2
Amazon reported a 14% jump in net sales to $213.4 billion for the fourth quarter, with AWS revenue climbing 24% to $35.6 billion. Net income hit $21.2 billion, or $1.95 per share. However, trailing 12-month free cash flow dropped to $11.2 billion, weighed down by higher spending on property and equipment. CEO Andy Jassy noted, “we expect to invest about $200 billion in capital expenditures across Amazon in 2026.” 3
Capex refers to funds poured into long-term assets like servers, chips, warehouses, and data centers. It’s typically a wager on future demand, but it also drains cash flow immediately. Markets react sharply to any sign that spending is outpacing sales.
Amazon’s core profit driver, AWS, sits at the heart of this discussion. It’s also where the AI ramp-up is most visible. Investors want proof that the increased spending is fueling quicker cloud expansion and maintaining margins, rather than just inflating costs.
The resistance carries a competitive angle. Major cloud providers are ramping up spending, yet the market favors those delivering AI-driven revenue growth. Meanwhile, companies needing bigger investments just to stay in the race face skepticism.
There is a downside risk, and it’s straightforward. Should enterprise demand weaken or rivals push prices down, Amazon might face a heavier cost load heading into a slowdown — capital-intensive business models usually appear weakest just before the cycle shifts.
Minutes before the open, the U.S. Employment Situation report drops at 8:30 a.m. ET, ready to shake things up. Traders will zero in on that data and the 9:30 a.m. ET cash open to see if Amazon’s selloff spreads or holds steady. 4
