Amazon(US:AMZN) The Motley Fool·2026-02-07 02:11Core Insights - Amazon's stock price fell over 5% following the announcement of a significant capital expenditure plan of $200 billion for 2026, raising concerns among investors [1][6]. Financial Performance - Amazon's fourth-quarter net sales increased by 14% to $213.4 billion, with advertising sales rising 23% to $21.3 billion [3][5]. - Amazon Web Services (AWS) reported sales of $35.6 billion, with revenue growth accelerating to 24%, contributing to a full-year sales total of $128.7 billion and operating income of $45.6 billion for 2025 [3][5]. - The company's operating income for the fourth quarter rose 18% to $25 billion [5]. Market Outlook - For the first quarter of 2026, Amazon projects net sales growth of 11% to 15%, estimating sales between $173.5 billion and $178.5 billion, with operating income expected to be between $16.5 billion and $21.5 billion [6]. - CEO Andy Jassy expressed confidence in generating strong long-term returns on invested capital, particularly due to increasing demand for Amazon's AI offerings [7].