Amazon's $200 Billion Capex Plan Triggers Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy GOOGL?
Source: CNBC
- Capex Announcement: Amazon's announcement of a $200 billion capital expenditure plan for 2026, significantly above the $146.6 billion forecasted by analysts, has raised concerns about the company's ability to monetize these investments quickly, leading to a nearly 11% drop in after-hours trading.
- Earnings Highlights: In Q4 2025, Amazon reported a 14% year-over-year revenue increase to $213.39 billion, surpassing expectations of $211.33 billion; however, earnings per share of $1.95 fell short of the $1.97 estimate, indicating pressure on profitability.
- Cloud Business Performance: Amazon Web Services (AWS) revenue grew 23.6% year-over-year to $35.58 billion, exceeding estimates by $514 million, and while operating margins declined by 190 basis points to 35.03%, they still outperformed the consensus estimate of 33.98%, showcasing strong growth potential in the cloud segment.
- Future Guidance: Although Amazon expects Q1 2026 net sales to rise 11% to 15%, reaching between $173.5 billion and $178.5 billion, the projected operating income of $16 billion to $21.5 billion falls significantly short of the $22.18 billion consensus, reflecting market caution regarding its future profitability.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 318.490
Low
305.00
Averages
374.25
High
400.00
Current: 318.490
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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