Why did Amazon stock drop around 10% today?

The drop followed Q4 EPS of $1.95 versus $1.97 expected and a 2026 capex outlook near $200 billion, far above the roughly $146.6 billion investors modeled. Management said spending is mainly to expand AWS for AI demand. Markets reacted to the near‑term free cash flow and margin impact.

Is AWS growth still strong after the results?

Yes. AWS revenue grew 24% year over year, supported by customer demand for AI workloads and cloud optimization stabilizing. The outlook suggests continued investment to meet capacity needs. The main debate is speed of monetization relative to the higher capex plan and its effect on margins and cash flow.

How does the $200B 2026 capex affect free cash flow?

It likely compresses free cash flow near term. TTM FCF is $11.2 billion, with a high price‑to‑free‑cash‑flow and capex to operating cash flow near 0.92. If utilization ramps quickly, cash generation can recover. If not, investors may see prolonged pressure before benefits flow through earnings.

What should investors in Germany watch next?

Focus on AWS utilization, AI backlog, and any updates to capex phasing. Track free cash flow trends, especially relative to operating cash flow. Also monitor EUR/USD because currency swings change local returns. Clear time horizons and position sizing help manage volatility around Amazon stock during this investment phase.

Is Amazon stock a buy after the selloff?

Analyst sentiment is positive (75 Buy, 1 Sell) and our Stock Grade is B+ with a BUY suggestion. Still, it depends on your time frame and risk tolerance. Short term, cash flow may stay tight. Longer term, faster AI monetization and AWS growth would support a stronger bull case.

Global Market Insights

AMZN Stock Today: February 6 — 10% Slide on $200B 2026 Capex Guide

ByHuzaifa Zahoor February 6, 2026February 6, 2026

Amazon stock fell about 10% on February 6 after Q4 results and a bold spending plan. EPS came in at $1.95 versus $1.97 expected, while management projected roughly $200 billion of 2026 capex to expand AWS for AI demand. AWS still posted 24% growth and advertising rose 23%. For investors in Germany, the trade‑off is clear: strong growth drivers versus near‑term free cash flow and margin pressure. We break down the numbers, the risks, and what to watch next.