Amazon Stock Dips 11% Despite Strong Q4 Earnings; 2026 Spending Plan Raises Investor Concerns

• Amazon's Q4 sales surged 14% due to strong holiday spending and better-than-expected growth in Amazon Web Services (AWS).
• Shares fell 11% in after-hours trading as investors reacted to Amazon's plan to increase capital spending by nearly 60% to USD 200 billion by 2026.
• The increased spending targets investments in AI, robots, semiconductors, and satellites, with CEO Andy Jassy anticipating strong long-term returns.
• Amazon is undergoing significant job cuts, with over 30,000 corporate and retail positions eliminated, and is closing most Amazon Go and Amazon Fresh stores.
• AWS delivered 24% growth in Q4, its fastest in 13 quarters, amidst competition from Microsoft Azure and Google Cloud.