Instant Reaction: Amazon Boosts Spending Far Ahead of Estimates
Bloomberg Surveillance
Bloomberg
3.8 • 1.2K Ratings
🗓️ 5 February 2026
⏱️ 25 minutes
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Summary
Amazon said it plans to spend billions more than expected on data centers, chips and other equipment, fueling investor concerns that the company’s massive bet on artificial intelligence will take longer to pay off than anticipated.The company reported $39.5 billion on property and equipment expenses in the fourth quarter, topping estimates by almost $5 billion, and said its capital expenditures would reach $200 billion this year. Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with: Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure Poonam Goyal and James Cakmak, Co-Founder and Chief Investment Officer at Clockwise Capita
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| 0:00.0 | Bloomberg Audio Studios, |
| 0:04.7 | Podcasts, Radio, News. |
| 0:08.7 | This is a breaking news update from Bloomberg. |
| 0:12.8 | Instant reaction and analysis from our 3,000 journalists and analysts around the world. |
| 0:19.2 | So this is for the fourth quarter, the look back. |
| 0:21.5 | We are looking at EPS, $1.95, a share that's a penny light from what the street was expecting, |
| 0:27.5 | fourth quarter operating margin. |
| 0:29.3 | That came in smack in line with what the street was forecasting, 11.7%. |
| 0:34.9 | Here's to the outlook. |
| 0:37.1 | Amazon sees first quarter net sales, $17.5 billion to 178.5 billion. |
| 0:44.6 | The estimate on the street, kind of in the middle of that, 175.54 billion. So maybe potentially it could be |
| 0:52.1 | below that based on that range. Taking a look at shares of Amazon here in the aftermarket. Down by about 4.4%. Now 3.9%. Bouncing around a little bit, but still lower by 2.5% now. Yeah, they are definitely bouncing around. So let's see. Let's go through some more of the numbers. Yeah, the one that you hit that really sticks out, Carol, is first quarter net sales, |
| 1:11.0 | that outlook sees net sales 173.5 to 178.5 billion dollars. That's within estimates of |
| 1:17.5 | 175.54 billion. Amazon sees first quarter operating income coming in. This is really light. |
| 1:25.5 | 16 and a half billion to 21.5 billion. The estimate was for $22.24 billion. So profit expected to take a hit at least not looking like what analysts wanted to see. Again, 22.24 billion is what analysts wanted to see. First quarter operating income set to look 16 and a half to 21.5 billion dollars. |
| 1:45.5 | All right. Let's continue with a look back there. Fourth quarter, North America net sales 127.08 billion. |
| 1:51.7 | The estimate was slightly above that at 127.21 billion. You see this CAPEX number? Now we're |
| 1:59.6 | getting the good stuff. Yes, we are. |
| 2:00.8 | We're. |
| 2:01.0 | 26 Kappex, about $200 billion. That way exceeds estimates. That estimate was for $146.11 billion. |
| 2:10.6 | Shares moving lower in the after hours, now down by about 7%, 8%. |
| 2:14.9 | All right. So we are seeing some pressure here. Hey, let's go through. There's more results. |
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