Explore the latest developments concerning Amazon plans to.
Amazon plans to spend big on AI but shares slump
Amazon on Thursday joined the other US tech giants in announcing a huge increase in spending on artificial intelligence (AI) projects and infrastructure, which seemed to knock back investors.
Reporting on its past year's financial performance, Amazon said it was expecting to spend $200bn this year on building out its business, much of it on AI.
That is a significant increase from last year, when it spent $125bn. The company's stock dipped in after hours trading by 10%.
While Amazon's spending plans are now the most aggressive among the Big Tech companies, including Meta, Google and Microsoft, collectively they expect to spend around $650bn on AI and related projects this year.
Amazon Powers Up Record Q4 Sales, Forecasts 50% Increase in Capex for 2026 to $200 Billion
Amazon‘s shopping cart spilled over in the fourth quarter of 2025: The ecommerce behemoth raked in a record $213.4 billion in revenue that beat Wall Street expectations. But the company’s shares fell in after-hours trading Thursday after Amazon said it expected to increase capital spending roughly 50% to $200 billion for 2026 as it races to compete in the AI space.
Overall net sales for the year-end 2025 holiday shopping quarter increased 14%. Net income was $21.2 billion (up 5.9%), translating to $1.95 per diluted share, which slightly missed forecasts.
Meanwhile, Amazon continued to carve off a bigger chunk of the digital ad market. Q4 advertising revenue totaled $21.32 billion, up 23%, which slightly topped expectations. Amazon’s ad services includes Prime Video ads and other video advertising, display ads and sponsored ads sold to sellers, vendors, publishers, authors and others. (By default, Prime Video, included as perk for Prime members, includes ads unless you pay extra for a no-ads experience.)
Smart Body Fat Scale Wireless LED Digital Bathroom Weight Scale Body Composition Analyzer Testing Scale
The dynamic landscape of current events often brings forth significant discussions. Monitoring these developments provides crucial insights.
For more detailed information, explore updates concerning Amazon plans to.