Amazon's impressive quarterly earnings, highlighted by a surge in profitability and revenue, were decisively overshadowed by the scale of its future investment plans.
The company reported a substantial profit of $21.2 billion driven by net sales of $213.4 billion, showcasing broad strength across its core divisions.
Its cloud computing arm, AWS, remained a powerhouse, while growth in retail, advertising, and its custom chip business further demonstrated the company's operational health and diversified revenue streams.
These results, however, served merely as a backdrop to the primary focus of investors.
The dramatic 11 percent plunge in share price was a direct reaction to staggering new capital expenditure forecasts unveiled by CEO Andy Jassy.
The company now anticipates investing approximately $200 billion in 2026, a figure that dwarfs current analyst expectations and signals a massive bet on future technologies.
Jassy framed this aggressive spending as necessary to capitalize on "very strong demand" and transformative opportunities, specifically in artificial intelligence infrastructure, semiconductor development, robotics, and its satellite internet venture, Project Kuiper.
While underscoring Amazon's long-term ambitions, the sheer magnitude of the planned outlay raised immediate concerns about near-term profit margins and the intense cost of competing in the premium AI arena. Read more...
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