Amazon Shares Plunge 11% After Earnings Miss and $200 Billion CapEx Plan
Amazon’s after-hours sell-off erased 11% after its latest report showed revenue of $154.4 billion narrowly beating estimates while EPS missed by $0.02. The company forecast $200 billion in capital expenditure for 2026, reigniting concerns over margin pressure despite stronger-than-expected AWS growth and raised net sales guidance.
1. Earnings Results And Market Reaction
Amazon reported $154.4 billion in quarterly revenue, slightly above consensus, but missed EPS by $0.02, triggering an 11% drop in after-hours trading. Investor sensitivity to even minor stumbles in execution amplified the sell-off amid fragile sentiment for big tech stocks.
2. $200 Billion CapEx Forecast Raises Concerns
Management outlined a record $200 billion capital expenditure plan for 2026, intensifying worries about margin erosion and capital discipline as the race for AI leadership escalates. The announcement overshadowed revenue beats and prompted questions about the timing of returns on these heavy investments.
3. Technical Breakdown And Near-Term Outlook
Shares sliced through key support at $210 and settled below $200, entering oversold territory and signaling risk of deeper retracement. In the short term, bulls can hope for sideways consolidation, but broader tech weakness could expose Amazon to further downside.
4. Contrarian Positives And Long-Term Case
Despite the sell-off, forward net sales guidance exceeded forecasts and AWS growth outpaced expectations, easing some cloud momentum concerns. Long-term investors note Amazon’s history of turning large-scale bets into durable profit streams, with many analysts still projecting over 50% upside to levels above $300.