Amazon Shares Drop Amid Spending Concerns
Shares of Amazon.com (NASDAQ: AMZN) fell 12% this past week following the company’s forecast of $200 billion in capital expenditures for 2026. This figure exceeds Wall Street’s expectations of around $150 billion, prompting investor sell-off.
In its latest quarter, Amazon reported a revenue increase of 14% to $213 billion and an operating income growth of 18% to $25 billion, driven by strong performance in retail, advertising, and cloud services.
CEO Andy Jassy attributed the increased spending to high demand for AI services and other opportunities in technology and space. However, the projected surge in capital expenditure has raised concerns among investors.
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