Amazon.com, Inc. (AMZN) reported a December-quarter earnings per share (EPS) miss, prompting an -8.8% decline in shares over the past year. The company’s management plans to invest $200 billion in capital expenditures for 2026, significantly up from $132 billion in 2025, raising investor concerns about potential impacts on earnings, particularly in light of worries about AI advancements destabilizing legacy tech sectors.
Despite the EPS miss, Amazon’s cloud unit, Amazon Web Services (AWS), saw a revenue increase of +24% year-over-year in Q4 2025, with a backlog up +40% to $244 billion, indicating strong demand. In comparison, Alphabet’s (GOOGL) Google Cloud reported an even steeper revenue increase of +48% over the same period. Total Q4 earnings for the seven major tech companies (Mag 7) are projected to rise +24.2% year-over-year.
