Following on Barron's quick hit, immediately below.
From GeekWire, February 5:
Amazon posted record quarterly revenue and strong cloud growth in Q4 — but its stock sunk more than 10% in after-hours trading Thursday after the company missed Wall Street’s profit expectations and revealed plans to spend $200 billion on capital expenditures in the upcoming year.
“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,” Amazon CEO Andy Jassy said in a statement.
That’s well ahead of analyst expectations, and up from the $125 billion that Amazon had estimated for capex in 2025.
Investors are closely watching how much tech companies are spending on infrastructure amid the AI boom. Google said this week that its capex could double this year to as high as $185 billion, and Meta said its spend could reach $135 billion in 2026, almost double from last year. Microsoft’s capital spend reached $37.5 billion in its most recent quarter, up 66% from a year ago.
Amazon’s total capital spending also includes the buildout of its e-commerce fulfillment network and retail stores, which means it’s not directly comparable to Microsoft, Google and others.
Amazon reported $213.4 billion in Q4 revenue, up 14% year-over-year and topping estimates of $211 billion. It’s first time the company has eclipsed $200 billion in quarterly revenue.
The company just missed expectations with earnings per share of $1.95, up from $1.86 in the year-ago period. Net income was $21.2 billion, up from $20 billion last year....
....MUCH MORE
Earlier:GeekWire's Amazon Earnings Preview (AMZN; MSFT)
