Breakfast News: Amazon's AWS Special Delivery
February 6, 2026
| Thursday's Markets |
|---|
| S&P 500 6,798 (-1.23%) |
| Nasdaq 22,541 (-1.59%) |
| Dow 48,909 (-1.2%) |
| Bitcoin $63,057 (-14.04%) |
Source: Image created by Jester AI.
1. Amazon Falls Over 5% as AI Spend Set To Soar
Amazon's (AMZN 4.36%) plan to push capital expenditure to $200 billion in 2026, coming on the back of the tech sell-off, sent the stock down as much as 8% in morning trading today. The spend – mostly on Amazon Web Services (AWS) – is almost as much as the entire fourth quarter revenue of $213 billion, and eight times the quarter's $25 billion operating income. Management expects Q1 operating income to fall short of analysts' expectations.
- "AWS growth continued to accelerate to 24%": CEO Andrew Jassy said that's the fastest in 13 quarters, adding it's "now a $142 billion annualized run rate business." He highlighted "strong growth in core non-AI workloads as enterprises return to focusing on moving infrastructure ... to the cloud."
- "The projected $200 billion capital expenditure plan ... dwarfs last year's $132 billion": Fool analyst Asit Sharma noted the planned spend also exceeds Amazon's expected operating cash flow for the full year, adding "the tech titan will have to dip meaningfully into its balance sheet."
2. Bitcoin Down 50% From 2025 Peak
The cryptocurrency rout continues, with Bitcoin (BTC 3.34%) falling to just over $60,000 overnight before regaining a little – as confidence in government support for crypto falters. Richard Farr at Pivotus Partners said "Our Bitcoin price target is $0," adding "That's not just for shock factor. It's where the math takes us."
- "Bitcoin drifting back toward $60,000 is not crypto dying": Joshua Chu, at the Hong Kong Web3 Association, is more upbeat, saying it's "the bill coming due for Treasuries and funds that treated bitcoin as a one-way asset."
- Nasdaq, S&P 500 futures rose around 0.3% in pre-market trading: The crypto fall echoes the tech stock sell-off, following three straight days of falls for the Nasdaq – down 4% since the end of January, but still up 63% in five years.
- Iris Energy (IREN 11.10%), meanwhile, saw its stock slump 11.5% yesterday as the Bitcoin miner suffers from the crypto crunch. In early trading today it slid a further 8%, despite a 41% EBITDA margin in Q2 – though it's still up 260% over 12 months.
3. Thursday's Selected After-Hours Earnings
- Fortinet (FTNT 2.70%) – recommended in Stock Advisor by Team Rule Breakers – gained 4% in pre-market trading after Q4 revenue jumped 15% year over year (YoY). Guidance from the cybersecurity specialist suggests another 10% to 13% in 2026.
- Digital Realty (DLR 1.13%) was little changed this morning, after posting a 14% YoY revenue rise in Q4. Net income fell, but management expects the data center operator's 2026 revenue to hit between $6.6 billion to $6.7 billion. The Dividend Investor rec has a 3% yield.
- Atlassian (TEAM 6.31%) dipped 1% early today on top of yesterday's 6% fall, despite cloud revenue in Q2 climbing 26% to hit a new record. Recommended in Hidden Gems, Atlassian CEO Mike Cannon-Brookes said "I'm convinced AI is great for Atlassian. Others think software is dead."
4. Market Punishes Rule Breakers DOCS and PI
- Doximity (DOCS 5.53%) recorded a 10% Q3 revenue rise, but net income fell under margin pressure. The stock plunged over 30% overnight as a result. Guidance suggests a steady year, with AI and other workflow tools expected to boost future profits.
- Impinj (PI +0.96%) fell more than 20% before today's bell, after the RFID chip provider saw modest 1.3% revenue growth in Q4. Free cash flow jumped 60%.
5. Your Take
Peter Lynch warned that 'turnarounds seldom turn.' Have you found this to be true in your investing experience, or have you had success with turnaround investments?
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