Jim Cramer On Amazon Stock Slip: Not Saying Downside Overdone, 'I Figure Tomorrow's Pretty Ugly'

Core Viewpoint - Amazon reported a strong fourth-quarter revenue of $213.39 billion, exceeding Wall Street expectations, but shares fell sharply due to concerns over significant future capital expenditures [2][3]. Financial Performance - Fourth-quarter net sales reached $213.39 billion, marking a 14% year-over-year increase and surpassing the expected $211.30 billion [2]. - The company guided first-quarter revenue to a range of $173.5 billion to $178.5 billion, aligning with consensus estimates [2]. Capital Expenditure Plans - CEO Andy Jassy announced plans for Amazon to invest approximately $200 billion in capital expenditures by 2026, focusing on artificial intelligence infrastructure, custom chips, robotics, and satellite networks [3]. - Projected capital expenditure growth for 2026 is estimated at 54%, a significant increase from previous expectations [4][5]. Market Reaction - Following the announcement, Amazon's stock closed down 4.42% at $222.69 and fell an additional 11.20% to $197.75 in after-hours trading [3]. - Analysts, including Gene Munster from Deepwater Asset Management, suggested that the market's negative reaction overlooks the long-term benefits of increased capital expenditures [4]. Analyst Perspectives - Jim Cramer from CNBC acknowledged the near-term stock pressure but defended the rationale behind Amazon's spending, indicating that the investments can be justified [6][7].