Amazon shares plunge as AI investment fears mount
Shares of Amazon fell sharply after the company signaled plans to significantly ramp up spending on artificial intelligence, raising concerns among investors about near-term profitability.
The stock dropped nearly 5% by the market close and extended its losses with a further decline of about 7% in after-hours trading, News.Az reports, citing foreign media.
On Thursday, Amazon disclosed plans to invest roughly $200 billion in capital expenditures for 2026, largely focused on expanding its AI capabilities.
Investors reacted cautiously to the announcement, worried that the scale of spending on AI infrastructure could put pressure on profit margins in the short term. The sell-off in Amazon shares also weighed on other major technology companies, as the broader sector came under pressure following similar high-spending signals.
The move marked one of Amazon’s steepest single-day share price declines in recent months.
News.Az
By Nijat Babayev
