The post Amazon stock twists 8% lower following startling $200 billion capex guidance appeared on BitcoinEthereumNews.com.

Amazon (AMZN) stock is holding onto an 8% loss late into Friday’s morning session, the first regular session since CEO Andy Jassy released the company’s fourth-quarter results. Despite a beat on the revenue side, the market was startled by a $0.01 miss on adjusted earnings per share (EPS) and Jassy’s guidance for $200 billion in capex this year, the highest level among all Magnificent 7 stocks. The Lion’s share of that capex figure is going toward the buildout of AI-focused data centers for Amazon Web Services’ (AWS) cloud business, but the guidance was $44 billion ahead of where the Street had been guessing. Overtaking Alphabet’s (GOOGL) $180 billion guidance, analysts worry it will push Amazon into negative free cash flow by year-end. The wider equity market has gained ground on Friday following a stark three-day sell-off. All three major US indices (S&P 500, NASDAQ Composite and Dow Jones Industrial Average) have risen more than 1% at the time of writing as the Dow takes the lead, up 1.77%. Amazon’s $200 billion AI spending spree clouds decent quarter In the fourth quarter, Amazon earned $1.95 in adjusted EPS, up 5% YoY, on $213.4 billion in net sales, up 14% YoY. While the income figure was just under consensus and the net revenue figure was $2.2 billion above it, the market found neither impressive. AWS grew revenue 24% YoY to $35.6 billion, but margins contracted in the cloud business. What’s more, free cash flow cratered to $11.2 billion from $38.2 billion one year ago. This is mostly blamed on the $125 billion that Amazon spent on capex last year. With the outlook calling for another $200 billion this year, Wall Street expects that figure to go negative. Magnificent 7 capex for 2025 and 2026 / @aleabitoreddit on X.com For his part, CEO…

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Filed under: News - @ February 6, 2026 5:29 pm