In the fourth quarter, Amazon announced a revenue of $213.4 billion, marking a 14% increase from the previous year. However, the company's stock fell over 10% in after-hours trading due to a profit miss against Wall Street expectations.
CEO Andy Jassy disclosed plans for significant capital expenditures, predicting an investment of approximately $200 billion in 2026, which is a substantial rise from the previous estimate of $125 billion for 2025. Jassy emphasized that the majority of this spending will focus on the company's AWS segment, driven by demand for AI solutions.
Amidst rising expenditures across the tech sector, competitors like Google and Meta are also ramping up their capital spending. Google forecasts its capex could reach $185 billion, while Meta anticipates spending around $135 billion in 2026. Jassy noted that AWS's growth could accelerate further if capacity constraints were lifted, as demand continues to outpace supply.