Quick overview

---

Amazon (NASDAQ: AMZN) reported capital expenditures of approximately $200 billion for 2026, which was significantly higher than anticipated, despite surpassing quarterly top-line estimates on Thursday. The company’s stock fell more than 9% at the start of Friday.

Wall Street is witnessing a significant shift away from technology stocks and toward other industries at the moment of Amazon’s results. Investors no longer believe that artificial intelligence will benefit the entire technology sector; instead, they now believe that AI will create certain winners and losers.

Chipmakers and the larger industry have been affected by the decline in the software subsector, which has been identified as a loser. Additionally, high valuations and ambitious spending plans worry traders. Amazon’s $200 billion forecast exceeded the $146.11 billion consensus estimate.

“Retail is delivering with increasing efficiency, and AWS is accelerating with even faster growth ahead.” In a note to clients, Morgan Stanley equity analyst Brian Nowak stated, “Yes, AMZN is investing (AWS, Retail, LEO), but it has a history of demonstrating ROIC, which leaves us bullish on this underappreciated GenAI winner across.”

The announcement was made just one day after Alphabet (NASDAQ: GOOGL), the parent company of Google, shocked the market with plans to spend up to $185 billion on capital projects in 2026.

Amazon earned $1.95 per share in its Q4 2025 revenue of $213.39 billion (up 13.6% year over year), missing profit projections by a cent. The consensus on the top line was $211 billion.