Amazon(US:AMZN) Xin Hua Cai Jing·2026-02-06 02:16Core Viewpoint - Amazon reported a 14% increase in net sales for Q4 2025, reaching $213.4 billion, with a net profit of $21.2 billion, up 6% year-over-year. The company raised its capital expenditure forecast for 2026 to $200 billion, significantly impacting its stock price, which fell over 11% in after-hours trading [2][4]. Group 1: Financial Performance - Q4 2025 net sales increased by 14% to $213.4 billion, slightly above analyst expectations [3]. - AWS revenue grew by 24% year-over-year to $35.58 billion, marking the highest growth rate in over three years [3]. - AWS operating profit for Q4 was $12.47 billion, a 17.3% increase year-over-year, with an operating margin of 35.0%, down from 36.9% a year earlier [3][4]. Group 2: Capital Expenditure Plans - Amazon's capital expenditure for 2026 is projected to reach $200 billion, nearly double that of Meta's expected spending for the year [2][4]. - The 2025 capital expenditure was approximately $131 billion, indicating a significant increase in investment to meet rising demand in AI and cloud services [4]. - CEO Andy Jassy emphasized that the majority of the increased spending will be directed towards AWS, highlighting the strong demand for AI-related services [4]. Group 3: Market Reactions - Analysts have mixed reactions to Amazon's capital expenditure plans, with Morgan Stanley viewing it as a strong bet on AI and cloud computing, while Goldman Sachs expressed concerns about short-term profit pressures [5]. - The scale of Amazon's investment exceeds market expectations, reflecting confidence in AI-driven growth [5]. - Other tech companies are also ramping up their capital expenditures in AI, with Alphabet and Meta announcing significant spending plans for 2026 [5].