Tech News
← Back to articles

Amazon stock falls 10% on $200 billion spending forecast, earnings miss

read original related products more articles

Amazon shares plunged more than 10% in extended trading Thursday after the company posted mixed fourth-quarter earnings, and boosted its full-year spending forecast to $200 billion.

Here's how the company did, compared with estimates from analysts polled by LSEG:

Earnings per share: $1.95 vs. $1.97 estimated

$1.95 vs. $1.97 estimated Revenue: $213.39 billion vs. $211.33 billion estimated

Wall Street was also looking at other key revenue numbers:

Amazon Web Services: $35.58 billion vs. $34.93 billion expected, according to StreetAccount

$35.58 billion vs. $34.93 billion expected, according to StreetAccount Advertising: $21.32 billion vs. $21.16 billion expected, according to StreetAccount

Amazon said it expects capital expenditures to continue to climb higher this year as it aggressively invests in data centers and other infrastructure to meet a surge in artificial intelligence demand.

The company projected capex to hit $200 billion this year, while analysts were expecting $146.6 billion, according to FactSet.

"With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital," CEO Andy Jassy said in a statement.

... continue reading