Why did Amazon stock drop after-hours on February 6?

Shares fell because management guided 2026 capital spending to about US$200 billion for AI infrastructure and flagged a softer Q1 operating-income outlook. Investors worry about near-term margin pressure and the risk of overspending if AI demand slows. At the same time, AWS posted 24% growth, so the long-term cloud story remains intact. The tension between heavy investment and profit timing drove the reaction.

How important is AWS growth to the thesis now?

It is central. The 24% AWS growth shows strong cloud and AI demand, but the investment case depends on converting infrastructure into higher utilization and premium AI services. Key metrics to monitor include backlog, attach rates for inference and managed tools, and margin mix. If AWS monetization scales as planned, long-run operating leverage can offset near-term capex and support a stronger earnings trajectory.

What should Canadian investors consider before buying Amazon stock?

Think about USD exposure, access method, and time horizon. AMZN trades in USD, so currency swings affect returns. Many Canadians own it directly or via Nasdaq-100 ETFs, some with CAD hedging. If your horizon is short, volatility around guidance can sting. If longer, focus on AWS monetization, utilization, and cash generation. Use position sizing, staged entries, and cost discipline to manage risk.

Is Amazon’s valuation reasonable after the drop?

At roughly US$2.38 trillion in market cap and a TTM P/E near 31, valuation assumes healthy multi-year growth. Street sentiment is still positive, with most analysts rating it Buy. Whether it is reasonable hinges on AWS margin expansion and the ROI on AI capex. If attach rates and utilization rise, earnings could grow into the multiple. If not, the multiple may compress.

What near-term catalysts could move the shares next?

Updates to Q1 operating-income guidance, capex pacing, and AWS customer commitments are key. Any clarity on AI service pricing, chip supply, and data-centre power contracts can shift expectations. Watch backlog growth, utilization trends, and commentary on enterprise AI adoption. Technicals also matter near-term, with volatility indicators elevated. Positive signs on monetization could help stabilize sentiment and rebuild confidence.

Global Market Insights

AMZN Stock Today: $200B 2026 AI Capex Sends Shares Sliding — February 6

ByDanny Kontos February 6, 2026February 6, 2026

Amazon stock fell 7% to 9% after-hours as management guided 2026 capital spending to about US$200 billion for AI infrastructure and signalled a softer Q1 operating-income outlook. AWS still grew 24%, keeping the long-term cloud thesis intact, but near-term margins may tighten. For Canadians, amazon stock moves matter through USD holdings and Nasdaq-100 ETFs, plus currency swings. We break down what changed, the AWS monetization path, and how AMZN fits in a diversified portfolio today.