Amazon stock fell more than 8% on Friday after its fourth-quarter earnings report, and it dropped over 14% for the week as investors reacted to a 2026 spending preview. Shares moved lower following the company’s announcement of large planned capital expenditures tied to AI and infrastructure.
The company said it plans to invest about $200 billion in capital expenditures for 2026. “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and 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.
Investors cited concern about the company’s rising capital intensity and its competitive positioning in AI. (Ed. note: The $200 billion forecast stirred investor concern.)
AMZN traded near $246 after the report, while analyst targets ranged from $244 to $340. Cantor Fitzgerald reiterated Overweight with a $260 target; Wedbush and B of A kept Buy ratings.
