Amazon stock sinks 10% despite earnings beat on $200B capex shock

Amazon's stock experienced a sharp decline of over 10%, falling below $200 in after-hours trading, following the announcement of an aggressive capital expenditure plan totaling $200 billion slated for 2026, primarily aimed at artificial intelligence infrastructure. This reaction occurred despite the company reporting strong fourth-quarter results, with revenue reaching $213.4 billion and net profit at $21.2 billion, driven by a robust holiday season and 24% year-over-year growth in its AWS cloud division. Investors prioritized the massive future spending outlook over the positive current earnings, reflecting broader tech sector anxiety regarding escalating AI investment costs. The company also confirmed recent layoffs of 16,000 workers as part of streamlining efforts and provided Q1 2026 revenue guidance between $173.5 billion and $178.5 billion.

(Source：Crypto Briefing)