Cloud giant Amazon (AMZN) reported its fourth quarter results after the bell on Thursday as a miss on its Q1 operating income estimate and a massive expansion in capital expenditures for 2026 sent shares plunging.
Amazon stock fell as much as 10% early Friday. In afternoon trading, the stock fell 6%.
Amazon said it anticipates Q1 operating income of between $16.5 billion and $21.5 billion, below analysts’ expectations of $22.2 billion. On top of that, the company said it will allocate upwards of $200 billion on capex for the year, a massive jump from the $125 billion Amazon was set to spend in 2025.
“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,” CEO Andy Jassy said in a statement.
For the quarter, Amazon saw earnings per…