Amazon (AMZN) Stock Drops as $200B AI Spending Plan Drives AWS Optimism

Amazon shares fell 2.54% following news of its planned $200 billion capital expenditure by 2026, primarily for AI data centers to support AWS growth. Despite the drop, AWS’s strong financial performance with $128.7 billion in 2025 sales and significant advertising revenue provide a positive outlook, supported by CEO Andy Jassy’s confidence in monetizing the AI infrastructure investment. Investor attention also focuses on new institutional holdings, strategic expansion in India, and the impact of evolving trade policies.