Why Amazon Stock Dropped This Week

Shares of Amazon.com (NASDAQ: AMZN) tumbled 12% this past week, according to information from S&P Global Market Intelligence, aft the e-commerce titan forecast a staggering $200 cardinal successful superior expenditures for 2026.

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Amazon's fourth-quarter results weren't the problem.

Revenue jumped 14% to $213 billion, portion operating income leaped 18% to $25 billion. The gains were driven by broad-based maturation crossed Amazon's retail, advertising, and unreality businesses.

Here's the connection from Amazon CEO Andy Jassy that spooked investors (emphasis added):

With specified beardown request for our existing offerings and seminal opportunities similar AI, chips, robotics, and debased world orbit satellites, we expect to put about $200 billion successful superior expenditures crossed Amazon successful 2026.

The archetypal portion of what Jassy said is conscionable fine. Amazon is enjoying booming request for its artificial quality (AI) services, custom-designed semiconductor chips utilized by its unreality computing customers, warehouse automation tools, and its forthcoming space-based net offerings.

However, Wall Street had expected Amazon to walk astir $150 cardinal connected its promising enlargement initiatives. The other $50 cardinal oregon truthful was a wee spot much than galore investors were comfy with, truthful they decided to merchantability their shares.

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Joe Tenebruso has positions successful Amazon. The Motley Fool has positions successful and recommends Amazon. The Motley Fool has a disclosure policy.

Why Amazon Stock Dropped This Week was primitively published by The Motley Fool