Why did the amazon share price drop today?

Shares fell after Amazon guided Q1 operating income below expectations and outlined a roughly US$200 billion capex plan for 2026 focused on AI, chips, and satellites. Investors are weighing near-term margin pressure against longer-term returns from the buildout, leading to a repricing of earnings and cash flow.

Is the US$200B AI capex guidance negative for shareholders?

It is not automatically negative. The plan can deepen moats across AWS and advertising, but it front-loads costs and depreciation. That can cap margins in the near term. The payoff depends on utilisation, pricing, and workload growth. Clear milestones and disciplined phasing will be key to value creation.

How does AWS revenue growth affect AMZN stock?

AWS revenue growth drives high-margin mix and funds investment. If AWS accelerates while maintaining margins, it can offset heavier depreciation from AI infrastructure. Slower growth or pricing pressure could limit operating leverage. Investors watch AI training and inference demand, migrations, and backlog health for signals.

What should Australian investors consider before buying AMZN?

Assess exposure via direct shares or ETFs, and review currency risk between AUD and USD. Check fees and tax settings for US holdings. Use staged entries to manage volatility. Track catalysts like the 30 April 2026 earnings date, AWS growth trends, and capex phasing updates before sizing positions.

Global Market Insights

AMZN Stock Today: February 08 – $200B AI Capex Plan Spurs Selloff

ByDanny Kontos February 7, 2026February 7, 2026

The amazon share price is under pressure today after Amazon outlined a US$200 billion capital plan for 2026 tied to AI, custom chips, and satellites, while guiding Q1 operating income below consensus. Shares of AMZN fell as investors balance near term margin dilution against long term return potential. AWS revenue growth topped views, but the AI capex guidance dominated the discussion. For Australian investors, the move matters for portfolios with US tech exposure and for currency considerations when assessing total returns.