Amazon Plans Its Own Big Boost In AI Spending. The Stock Is Tumbling.

Core Insights - Amazon's stock has declined over 7% in extended trading after missing quarterly earnings estimates and announcing a significant increase in AI spending, which surprised investors [1][1] - The company plans to invest up to $200 billion in capital expenditures this year, exceeding analysts' expectations of approximately $160 billion [1][1] - CEO Andy Jassy expressed confidence in a "strong long-term return" on these investments, particularly highlighting the growth in Amazon Web Services (AWS) [1][1] Financial Performance - Amazon's total revenue for the fourth quarter reached a record $213.4 billion, driven by a 24% year-over-year growth in AWS revenue, which amounted to $35.6 billion [1][1] - Earnings per share for the quarter were reported at $1.95, slightly below analyst consensus [1][1] - The company anticipates first-quarter revenue between $173.5 billion and $178.5 billion, with analysts expecting $175.38 billion [1][1] Market Context - Amazon's stock performance has been notably weak among the "Magnificent Seven," with a year-to-date decline of about 4% as of Thursday's close [1][1] - Other major tech companies, including Microsoft and Google, have also faced stock declines following announcements of increased spending forecasts in AI [1][1]