Amazon shares tumble 8% as big tech sell-off continues
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Amazon plunged in early trading on Friday as investors digested the company’s plans to spend around USD200 billion ($288 billion) on capital expenditures in 2026.
The numbers: Shares in the Seattle-based tech giant were trading down over 8% at 9:45am ET on Friday (1:45am AEDT Saturday).
While shares in the tech-heavy Nasdaq Composite index inched up 0.8%, it remained over 3% lower on the week on investor fears about the scale of AI investment by big tech players.
The context: Big Tech firms have seen more than USD1 trillion wiped from their market cap over the past week, as AI spending fears sparked a sell-off.
On the capex spending announced in the company’s Q4 earnings on Thursday, CEO Andy Jassy said the company was focused on long-term returns from AI, chips, robotics and satellites.
“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."
