Updated 6 February 2026 at 13:34 IST
Amazon Shares Price Plummets 11% After Solid Q4 Earnings - What Triggered This?
The Jeff Bezos led tech major Amazon's share price nosedived 11% after hours trading Thursday, February 5, as investor sentiments dipped after the e-commerce major surged its capex by nearly 60% to $200 billion.
Amazon Share Price: The Jeff Bezos founded tech major Amazon's share price nosedived 11% in after-hours trading Thursday, February 5, as investor sentiments dipped after the e-commerce major surged its capex by nearly 60% to $200 billion. This capital spending hike from previous year's $128 billion is on the basis of the upside potential seen in areas like artificial intelligence, semiconductors, satellites, and robots.
The surge in capex allocation has surpassed Wall Street expectations and intensifying concerns about Big Tech's rising artificial intelligence costs.
The sharp sell-off cam into play despite solid Q4 results, indicating a 14% surge in revenue to $213.4 bn, and its flagship cloud entity Amazon Web Services (AWS) reporting its fastest growth in 13 quarters at 24%.
Similar to the trend witnessed in other US-based tech mammoths, this Seattle-based company intends to capitalize on the AI revolution, especially via AWS, which is pitted against Google Cloud, and Microsoft Azure in the cloud computing space.
Cloud computing giants have emphasized on the demand for AI services outrunning supply in the backdrop of increase in spending directed at meeting energy needs to power the tech.
The earnings release comes on the heels of Alphabet and Microsoft reporting that they are seeing cloud computing demand surge and are continuing to invest heavily in infrastructure supporting the technology.
Meanwhile, Amazon announced last week that it would be slashing 16,000 jobs globally as part of a restructuring during a period of enhanced focus on AI.
This is the second round of mass layoffs for the e-commerce major a period of three months.
In an email statement last week, the company noted that AI was "not the reason behind the vast majority of these reductions." This comes after Amazon in the previous week announcing that it would layoff 5,000 retail workers.
In the ongoing quarter, the company expects sales to range between $173.5 billion and $178.5 billion.
Published By : Nitin Waghela
Published On: 6 February 2026 at 13:34 IST