Amazon.com Inc (AMZN)
Big Tech stocks are treading water after $1 trillion sell-off week
Big Tech stocks began the new trading week mostly flat in premarket trading Monday after a week that saw more than $1 trillion wiped from their market caps. Microsoft, Oracle, Meta, Alphabet and Amazon were all largely flat in early premarket trading, with Nvidia slightly down after rebounding on Friday.
Buy The Dip In Amazon Stock?
Amazon stock (NASDAQ: AMZN) has retreated 15% over the past month, currently trading at $210. This slide was largely fueled by the Feb. 5 earnings report, where the company's $200 billion capital expenditure forecast for 2026 caught analysts off guard.
Amazon: Why $200 Billion In CapEx Isn't As Aggressive As It Looks
Amazon tumbled after its 4Q FY2025 earnings, driven by concerns over overspending tied to its $200B capex outlook and negative FY2026 FCF, which is overdone. AMZN's FY2026 capex outlook implies a capex-to-total-revenue ratio of 25%, up from 18.5% in 4Q, but still significantly below the 40%–50% ratios implied by other hyperscalers' capex outlooks. AWS growth accelerated in 4Q, and management's focus on monetizing its $200 billion data center investment suggests that growth will continue to accelerate in FY2026.
Why Amazon Stock Dropped This Week
Amazon delivered a solid fourth-quarter earnings report. But the company's aggressive growth investments threw investors into a tizzy.
Think AWS Is Losing To Azure and Google Cloud? You Need To Hear This Quote From Amazon CEO Andy Jassy
Amazon CEO Andy Jassy took the opportunity on the earnings call to remind investors that AWS is still significantly larger than its rivals. Investors were skeptical of the company's plans to spend $200 billion in capital expenditures this year.
Wall Street analysts update Amazon's stock price target after Q4 2025 earnings
Despite weakness in Amazon's (NASDAQ: AMZN) stock following its earnings release, Wall Street analysts remain broadly bullish on the shares over the coming year.
What Moved Markets This Week
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Breaking Down Mag 7 Earnings: Good or Bad?
Amazon AMZN missed EPS estimates in its December-quarter report, but the business is otherwise literally firing on all cylinders.
Buy the Dip in Amazon Stock After Mixed Q4 Results & CapEx Concerns?
In the aftermath of its Q4 post-earnings selloff, Amazon stock is trading near its cheapest P/E valuation in a decade.
Tech AI spending may approach $700 billion this year, but the blow to cash raises red flags
Tech's megacaps announced major increases in capex for 2026, with the four hyperscalers now expecting combined spending of close to $700 billion. Reaching those numbers is going to mean a big drop in free cash flow, with Amazon projected to turn negative this year.
Amazon's $8 billion Anthropic investment balloons to $61 billion
Amazon's Anthropic stake is now valued at $60.6 billion, a seven-fold increase. Amazon has invested $8 billion in Anthropic so far.
Amazon's shares fall after announcing plan to increase capital spending by 60%
Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and a better-than-expected growth in its prominent cloud computing unit.But shares fell 11% in after hours trading on Thursday as investors appeared to be spooked by the Seattle-based tech company's plans to increase capital spending by nearly 60% to $200 billion from last year's $128 billion as it sees opportunities in artificial intelligence, robots, semiconductors and satellites. The company's fourth-quarter profits also were slightly below analysts' projections.Wall Street analysts were expecting capital spending to rise to around $147 billion this year, according to FactSet.Amazon's CEO Andy Jassy told investors on the call following the earnings release that it anticipates strong long-term return on the invested capital.
