Why did amazon stock fall today?

Investors reacted to management outlining about $200 billion of AI-related capex for 2026. The plan implies higher capital intensity and a slower free cash flow ramp before AI revenues fully scale. Some brokerages trimmed price targets, and shares fell roughly double digits as markets weighed the near-term margin impact.

Is AWS growth enough to offset the AI capex?

AWS growth accelerated to 24% year over year, which helps. But the question is timing and unit economics. If AI workloads lift utilization and pricing, returns can improve. Markets want proof that higher depreciation and energy costs are met with faster revenue and better margins over the next several quarters.

How should Canadian investors approach AMZN now?

Decide position size with total tech weighting in mind and manage USD exposure thoughtfully. Use staged buys or dollar-cost averaging to handle volatility. Prefer registered accounts when tax or FX considerations help. Set checkpoints tied to AI ROI, utilization, and cash conversion before adding meaningfully to positions.

Is amazon stock expensive after the drop?

On trailing figures, price to earnings is about 28.6, EV to EBITDA near 16.0, and free cash flow yield around 0.34%. That is not cheap if margins compress. The bull case requires AI-driven revenue and efficiency gains to lift cash flow over time, validating current multiples.

Global Market Insights

AMZN Stock Today: February 06 — $200B AI Capex Shock Hits Shares

ByDanny Kontos February 7, 2026February 7, 2026

Amazon stock is under pressure after management flagged roughly $200 billion of AI-related capex for 2026. Shares of AMZN dropped as investors weighed higher capital intensity, thinner near-term margins, and a longer payback period. AWS growth remains strong, which helps sentiment, but the scale of data centre, chip, and power spending is the story today. For Canadian investors, this move affects portfolio mix, currency exposure, and tech weighting. We explain what changed, why it matters, and how to respond with clear risk controls.