Overview
- CEO Andy Jassy said Amazon plans about $200 billion of 2026 capital spending targeted at AI infrastructure, custom chips, robotics and low‑Earth‑orbit satellites.
- Q4 results showed $1.95 in EPS on $213.4 billion in revenue, and the company forecast Q1 operating income of $16.5 billion to $21.5 billion versus a $22.2 billion analyst estimate.
- The stock fell roughly 9% to 10% around Friday’s open, erasing well over $200 billion in market value and knocking Jeff Bezos to fifth place behind Mark Zuckerberg in Forbes’ real‑time rankings.
- AWS revenue reached $35.6 billion, advertising topped $21.3 billion, and analysts noted the scale of the capex plan exceeded prior Wall Street assumptions.
- Company moves included about 16,000 job cuts and plans to close Amazon Fresh and Amazon Go stores, with some locations to be replaced by Whole Foods, as peers also outline large 2026 AI capex totaling roughly $610 billion across the biggest cloud platforms.