On February 5, 2026, Amazon’s stock experienced a notable decline, closing at $222.69, down 4.42% as investors grappled with a broader sell-off in the tech and AI sectors. The company’s market cap stood at a substantial $2.5 trillion, with the day’s trading range fluctuating between $220.38 and $226.30. Despite the downturn, trading volume surged to 87.3 million shares, eclipsing its three-month average of 41.5 million shares by about 110%.
Market indices mirrored Amazon’s struggles, with the S&P 500 dropping 1.20% to 6,800 points and the Nasdaq Composite falling 1.59% to close at 22,541. Competitors in the e-commerce and cloud computing sectors faced similar pressures, with Alibaba Group and Walmart recording slight declines of 0.87% and 0.83%, respectively.
Investors had been eagerly awaiting Amazon’s quarterly results, specifically focusing on AWS cloud growth, AI capital expenditures (capex), and forward guidance. Following the earnings release, mixed results prompted further scrutiny. Although Amazon reported a revenue figure of $213.4 billion that exceeded expectations, its earnings fell slightly short. Notably, AWS cloud service revenue showed a robust 24% year-over-year increase, surpassing analysts’ estimates.
However, the announcement regarding capital spending raised eyebrows. Amazon forecasted approximately $200 billion in capex for 2026, a figure that stunned many investors and echoed Alphabet’s recent surprise announcement of a doubling of its capital expenditures. Despite investor apprehension, there remains hope that if a clear path to return on these substantial investments emerges, Amazon’s stock could rebound from its nearly 10% after-hours slump.
As market watchers continue to assess Amazon’s growth trajectory amidst significant spending, the outlook for investors remains uncertain, yet potentially lucrative if strategic investments translate into measurable returns in the future.
