Amazon’s (AMZN) stock was down as much as 10% after the e-commerce company reported mixed fourth-quarter 2025 financial results and delivered a $200 billion U.S. spending forecast.
The Seattle-based company announced earnings per share (EPS) of $1.95 U.S., which was below the $1.97 U.S. forecast on Wall Street.
Revenue of $213.39 billion U.S. managed to top the $211.33 billion U.S. consensus estimate of analysts.
However, analysts and investors appear to be shocked by the company’s projected 2026 capital expenditures of $200 billion U.S. Wall Street was expecting $146.6 billion U.S. in spending.
In 2025, Amazon’s capital expenditures totaled $131 billion U.S.
In Amazon’s earnings statement, the company said: “With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026.”
On an earnings call with analysts and media, management said the heavy spending this year will mostly go towards the company’s cloud-computing unit Amazon Web Services (AWS).
Revenue from Amazon’s cloud unit grew 24% during the fourth quarter of 2025, topping analysts’ estimates for 21% growth.
Amazon remains the cloud infrastructure leader but faces rising competition from rivals such as Alphabet (GOOGL) and Microsoft (MSFT).
The advertising business at Amazon also continues to grow with revenue up 23% year-over-year to $21.3 billion U.S. during the final quarter of last year.
For the current quarter, Amazon expects sales of $173.5 billion U.S. to $178.5 billion U.S., representing growth of 11% to 15%. Analysts were expecting $175.6 billion U.S. in revenue.
The latest earnings and guidance come with Amazon continuing to downsize. The company recently cut 16,000 corporate jobs after eliminating 14,000 positions last autumn.
Amazon had 1.57 million employees globally at the end of 2025, mostly warehouse workers.
The company’s advertising business also continues to grow. Revenue grew 23% year-over-year to $21.30 billion U.S. during Q4 2025.
Prior to today (Feb. 6), AMZN stock had declined 7% in the last 12 months to trade at $222.69 U.S. per share.
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