Why did Amazon shares fall today?

Markets were surprised by Amazon’s plan to spend about US$200 billion in 2026 on AI, chips, robotics, and satellites, alongside a slight Q4 EPS miss. Investors fear lower near-term margins and free cash flow, even if long-term growth improves. That mix led to a sharp, sentiment-driven selloff as models adjusted to heavier capex.

Is the US$200bn capex dilutive or funded by debt?

Management has not detailed the full funding mix. Amazon has strong cash generation and manageable leverage, but a front-loaded build could tighten free cash flow. We will watch updated guidance, potential partner co-investment, and any incremental debt issuance. Clear ROI milestones would help reduce funding concerns over the next few quarters.

How does AWS factor into the thesis after this news?

AWS remains central. The big spend is aimed at securing compute, cutting unit costs, and improving AI performance. If customers adopt new services at scale, AWS growth and margins could re-accelerate after the investment phase. Execution on capacity timing, pricing, and workload migration will determine how quickly returns show up.

What should Australian investors consider before buying AMZN?

Think in USD terms and manage FX risk. Size positions for volatility, use staged entries, and watch technical levels near the 200-day average. Track earnings on 30 April 2026 for capex pacing and ROI updates. If single-stock risk feels high, consider a diversified approach to global AI infrastructure exposure.

Global Market Insights

AMZN Stock Today: February 7 – $200B AI Capex Shocks, Shares Slide

ByHuzaifa Zahoor February 7, 2026February 7, 2026

AMZN stock today is in focus after Amazon outlined a 2026 capital spend near US$200 billion for AI, chips, robotics and LEO satellites. The plan surprised markets and sent shares lower, even as AWS growth re-accelerates. For Australian investors, the key is balancing long-term AI leadership with near-term margin and cash-flow pressure. We break down what changed, how Wall Street is positioned, and the technical levels to watch, so you can decide whether to buy the dip or wait.