Amazon Stock Sinks Amid Q4 Earnings Miss, Massive 2026 Capex Announcement

• Meanwhile, the company reported earnings per share (EPS) of $1.95 per diluted share, compared to $1.86 in the fourth quarter of 2024 and below analyst expectations of $1.97 as per Stocktwits data. 
• The company also boosted its capital expenditure for 2026, announcing a $200 billion allocation, up from about $130 billion reported in 2025.
• During the earnings call with investors, CEO Andy Jassy clarified that the capital expenditures would predominantly be in Amazon Web Services because of “very high demand.”

Shares of e-commerce giant Amazon Inc. (AMZN) slid nearly 11% in after-market trading hours on Thursday after the company announced its fourth-quarter (Q4) 2025 earnings results.

The company reported a 14% rise in quarterly revenue to $213.4 billion in the quarter, compared with $187.8 billion in the same period last year. This was slightly above the street consensus of $211.44 billion, according to data from Stocktwits.

Meanwhile, the company reported earnings per share (EPS) of $1.95 per diluted share, compared to $1.86 in the fourth quarter of 2024 and below analyst expectations of $1.97 as per Stocktwits data.

Amazon also boosted its capital expenditure for 2026, announcing a $200 billion allocation, up from about $130 billion reported in 2025.

Capital Spend

“With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital,” Andy Jassy, President and CEO of Amazon, said in the earnings report.

During the earnings call with investors, Jassy clarified that the capital expenditures would predominantly be in Amazon Web Services because of “very high demand.”

“Customers really want AWS for core and AI workloads. And we're monetizing capacity as fast as we can install it,” he said. “We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well.”

Meanwhile, AWS clocked a revenue of $35.58 billion for the quarter, a growth of 24%, which Jassy said was the company’s fastest growth in 13 quarters.

The CEO added that the biggest reason AWS was gaining was due to the company’s “uniquely broad, top-to-bottom AI stack functionality,” adding that “we're doing what we've always done in AWS solving customer challenges.”

Q1 Guidance

For the upcoming quarter, Amazon expects revenue to grow between 11% and 15%, to around $173.5 billion to $178.5 billion. As per data from Fiscal.ai, the street was estimating revenues of $175.16 billion for the quarter ending in March 2026.

The company said it expects operating income to be between $16.5 billion and $21.5 billion, compared with $18.4 billion in the first quarter of 2025, which accounts for about $1 billion of higher year-over-year Amazon Leo costs, investment in quick commerce, and even sharper prices in its international stores business.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AMZN shares jumped from ‘bullish’ to ‘extremely bullish’ in the past 24 hours. Meanwhile, message volumes increased from ‘high’ to ‘extremely high’ levels.

One bullish user commented that after Google’s report, it was likely that Amazon would spend at least as much in capex. In its latest earnings results, Google parent Alphabet Inc. (GGOG, GOOGL) announced it would allocate about $175 billion to $185 billion in 2026 capital expenditures.

Another user commented that Amazon’s capex spending should not be compared with others, citing the company’s investment in improving logistics, among others. The user said that they were surprised by the stock price decline and reiterated that ‘only time will make sure Amazon is here to stay.’

A third user urged the market to buy the dip, citing the investment in data centres.

Shares of AMZN have declined more than 5% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also Read: Microsoft Falls On Major Analyst Downgrade — What Is Retail’s Take On The Stock?
 

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