NASDAQ: AMZN
Key Data Points
Amazon (AMZN 5.49%), which operates a global e-commerce platform and cloud computing services, closed Friday at $210.32, down 5.55%. The stock fell after management outlined plans for roughly $200 billion in 2026 capital expenditures focused on AI and cloud infrastructure.
Trading volume reached 178.4 million shares, about 306% above its three-month average of 43.9 million shares. Amazon IPO'd in 1997 and has grown 214,694% since going public.
How the markets moved today
The S&P 500 added 1.94% to finish Friday at 6,930, while the Nasdaq Composite climbed 2.18% to close at 23,031. Within e-commerce and cloud computing, industry peers Alibaba Group closed at $162.49, up 3.00%, and Walmart finished at $131.18, rising 3.34%, outpacing Amazon’s decline.
What this means for investors
Amazon stock slid nearly 6% today after delivering mixed earnings that came up shy of Wall Street’s consensus. However, the figure that stole the show was the company’s plan to spend roughly $200 billion on capex for AWS and other AI initiatives. The sheer size of this spending spooked the market today.
That said, investors should not panic -- by any means. Sales and operating cash flow grew by 12% and 20% in Q4. Best yet, Amazon’s custom AI chips business grew by triple digits and reached $10 billion in sales, while its AWS backlog grew 40%. Yes, $200 billion is an unfathomable amount of capex, but Amazon’s long-term track record of reinvesting almost all its cash in its growth isn’t one I’m about to start betting against.
