Why did Amazon shares drop on February 6, 2026?

Amazon shares dropped 8% in premarket trading on February 6, 2026, due to investor concerns over the company's substantial capital expenditure plans for artificial intelligence.

What is the total AI spending expected from Big Tech companies?

Big Tech companies are collectively estimated to be investing over $600 billion in artificial intelligence this year.

What are Amazon's projected capital expenditure plans for AI?

Amazon's capital expenditure plans are expected to reach $200 billion by the year 2026, a significant increase that has raised investor concerns.

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Amazon's AI Spending Sparks Investor Fears

6 Feb

Summary

Amazon shares dropped 8% due to substantial AI capital expenditure plans.
Investor concerns rise over Big Tech's $600 billion AI spending spree.
Amazon's capital expenditure is projected to reach $200 billion by 2026.

Amazon's AI Spending Sparks Investor Fears

Amazon's shares fell 8% in premarket trading on Friday, February 6, 2026, following the announcement of ambitious capital expenditure plans heavily focused on artificial intelligence. These plans have intensified investor worries about the escalating spending within the Big Tech industry.

Collectively, major technology companies are estimated to be investing over $600 billion in AI this year. This substantial outlay has led to investor doubts regarding the timeline for realizing significant returns from such massive capital investments.

Analysts noted that while increased capital intensity was anticipated, the magnitude of Amazon's planned spending significantly exceeded expectations. Concerns are also mounting that rapidly advancing AI tools could potentially disrupt traditional software markets and compress profit margins.

Amazon's capital expenditure is slated to reach $200 billion by 2026. This contrasts with CEO Andy Jassy's defensive remarks regarding AWS growth compared to competitors during a recent investor call.

In response to the news, at least five brokerage firms have revised their price targets for Amazon's stock downwards. The company's current price-to-earnings ratio stands at 27.01.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.