:max_bytes(150000):strip_icc()/GettyImages-2249060295-d8b3f943198e4954889fb28c0247d8db.jpg?w=1024&resize=1024,1024&ssl=1 "Amazon Is the Dow’s Weakest Performer Friday as Stock Sinks Over 5%. Here’s Why")
Key Takeaways
- Amazon shares slumped Friday after the tech giant fell short of profit estimates and outlined bigger-than-expected spending plans.
- Several Wall Street analysts lowered their price targets for Amazon stock after the results, citing concerns about the company’s spending.
Amazon said it plans to invest heavily in its AI buildout this year, and investors aren’t pleased.
Shares of the world’s largest cloud provider dropped over 5% to post the weakest performance in the Dow Jones Industrial Average Friday, on a day when the index rose to a record high.
The tech giant reported profits yesterday that missed expectations and said it could spend up to $200 billion this year on capital expenditures, far more than many Wall Street analysts anticipated. Executives said most of that spending is set to go toward the company’s cloud business, as it invests in data centers and equipment to expand its AI capacity.
https://www.investopedia.com/amazon-is-the-dow-weakest-performer-friday-here-is-why-update-11901053