New York, Feb 4, 2026, 16:18 (ET) — After-hours
- Amazon shares fell roughly 2.4% on Wednesday, mirroring a wider retreat in tech stocks.
- Amazon’s quarterly report drops Thursday, with investors zeroing in on AWS and the company’s spending habits.
- Capital spending fueled by AI has turned into a key stress factor within the mega-cap sector.
Amazon.com Inc shares dropped on Wednesday, closing down roughly 2.4% at $232.99. During the session, the stock fluctuated between $231.82 and $238.86. 1
Timing played a role as U.S. stocks slipped, weighed down by worries over high valuations in AI-related stocks and doubts about the speed of the recent rally. The Nasdaq dropped 1.51%. “The market is suddenly skeptical and concerned about it,” said Jed Ellerbroek, portfolio manager at Argent Capital. 2
Investors zeroed in on one key figure: capital spending, or capex. Alphabet projected $175 billion to $185 billion in capex for 2026, sending its shares down over 6% in after-hours trading. It’s a clear sign that markets are demanding more visible returns on the heavy investments Big Tech is making. 3
Amazon is pushing AI beyond its usual server realm. At Amazon MGM Studios, the company aims to slash costs and speed up segments of film and TV production using AI tools, executive Albert Cheng revealed. A closed beta kicks off in March, with results expected by May. “We fundamentally believe that AI can accelerate, but it won’t replace” human creativity, Cheng emphasized. 4
Amazon Web Services CEO Matt Garman dismissed some of the more far-out ideas about space-based data centers. He said they’re “pretty far” from becoming a reality, citing tough economics driven by launch capacity and costs. 5
Amazon is tackling a straightforward challenge in retail: groceries. The company is banking on a 225,000-square-foot “mega-store” near Chicago to take on Walmart and Costco more head-on, even as it scales back parts of Amazon Fresh and Amazon Go. “To go all-in on brick-and-mortar is probably not the long-term strategy for Amazon,” said S&P Global analyst Bea Chiem. 6
Wall Street’s focus for Thursday’s report zeroes in on two key figures: earnings per share (EPS) and AWS growth. According to GeekWire, Amazon has set aside roughly $125 billion for 2025 capex. The attention is now shifting to what 2026’s spending plan will look like. Wedbush analyst Scott Devitt noted, “We expect 2026 to be a big year for AWS.” Meanwhile, William Blair’s Dylan Carden described AWS growth through 2027 as spanning “a perfectly narrow range.” 7
The bar is climbing even as the tape gets tougher. Should Amazon’s guidance fuel worries that AI capex will keep rising with no quick return — or if AWS growth seems limited by capacity — the stock might find it hard to bounce back in the next session.
Thursday after the market closes, Amazon will hold a conference call at 5:00 p.m. ET to go over its fourth-quarter 2025 results. Investors will be focused on any updates about 2026 capex plans and clues on how fast AWS can monetize AI demand. 8
