Why did Amazon stock fall about 10% after hours?

The company set 2026 capital spending at $200 billion, well above prior estimates near $147 billion, and Q4 EPS slightly missed. Investors now expect lower near-term free cash flow as Amazon funds AI, AWS infrastructure, and chips. The market is reassessing the timing of returns from this larger investment plan.

Is the $200B 2026 capex plan financially manageable?

Amazon has strong operating cash flow, an 11.06% net margin, interest coverage of 35.20, and debt to equity of 0.37. These support the plan. However, free cash flow yield is only 0.44% today, so the near-term picture is tight. Delivery on AI capacity and AWS demand is key to justify the spend.

How do AWS and advertising trends affect the outlook?

AWS grew 24% and advertising rose 23%. These faster-growing segments improve mix, help margins, and can offset some near-term investment pressure. If AWS utilization and ad demand remain healthy into 2026, they support a recovery in free cash flow and the long-term thesis behind the current investment cycle.

What should Swiss investors monitor next?

Focus on updates to the capex cadence, AI capacity rollouts, AWS growth rates, and customer adoption of new services. Track technical levels around the 50-day and 200-day averages. Also watch USD/CHF, since returns are in USD. Use staged buys and risk limits to manage exposure to Amazon stock during volatility.

Is the current valuation reasonable after the drop?

The shares trade near 31x earnings, 3.45x sales, and 15.55x EV to EBITDA. That is not cheap, but it can be justified if AWS and AI investments deliver durable growth. Analyst sentiment is strong, with 75 Buy and 1 Sell ratings, so the bar for execution remains high.

Global Market Insights

AMZN Stock Today: February 06 — 10% Drop on $200B 2026 Capex Shock

ByDanny Kontos February 6, 2026February 6, 2026

Amazon stock slid about 10% after hours on 6 February after the company set 2026 capital spending at $200 billion, far above prior expectations. Shares of AMZN reacted to a slight Q4 EPS miss and a bigger push into AI and AWS infrastructure. For Swiss investors, the story is a near-term free cash flow squeeze versus a long-term AI build. We review growth in AWS and ads, the valuation reset, and a simple plan to manage USD and volatility risk.