On Thursday, Amazon.com, Inc. (NASDAQ:AMZN) shares slid sharply in after-hours trading despite a fourth-quarter revenue beat.
Amazon reported fourth-quarter net sales of $213.39 billion, up 14% year over year and ahead of Wall Street expectations of $211.30 billion, according to Benzinga Pro.
The company guided first-quarter revenue to a range of $173.5 billion to $178.5 billion, roughly in line with consensus estimates.
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The stock’s selloff came after CEO Andy Jassy highlighted Amazon’s massive investment ambitions, saying the company expects to spend about $200 billion in capital expenditures in 2026.
The investments will target artificial intelligence infrastructure, custom chips, robotics and satellite networks.
Amazon closed down 4.42% at $222.69 on Thursday and fell another 11.20% to $197.75 in after-hours trading, according to Benzinga Pro.
Deepwater Asset Management’s Gene Munster argued the market reaction misses the bigger picture.
He said that Amazon’s projected 54% capex growth in 2026 brings it closer to peers like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms, Inc. (NASDAQ:META).
“My takeaway…the market is largely missing the point,” he stated.
More capex is a good thing for both the companies that are spending more and the broader AI trade. Market disagrees with me. $AMZN capex growth in 2026 projected to be 54%. Whisper was it was going to 40% up from 18% in-print.
Here’s where we stand if they hit the high end…
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CNBC’s Jim Cramer acknowledged near-term pressure on the stock but defended the rationale behind the spending.
“I’m not going to say Amazon’s overdone on the downside because I figure tomorrow’s pretty ugly,” Cramer said on X, adding that there is “a reason for the spend that can be justified.”
I am not going to say Amazon’s overdone on the downside because i figure tomorrow’s pretty ugly. I am saying that there’s a reason for the spend that can be justified
