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Over the past few months, mega-cap tech stocks have been caught in an unusual tech tug-of-war: investors are thrilled about AI growth but jittery about how much it will cost to build the infrastructure needed to deliver that AI future. Big names like Alphabet (GOOG) (GOOGL) and Microsoft (MSFT) have seen share prices dip after eye-popping capital expenditure plans flooded into the market alongside earnings reports.
In this climate, Amazon’s (AMZN) latest quarterly report triggered its own selloff, not because the business is faltering, but because the company plans $200 billion in capex for 2026, far above Street expectations and well ahead of its peers’ recent guidance. That shocked the market so much that even famed bull Dan Ives trimmed his price target to $300, despite saying management’s guidance might be too conservative. AWS revenue is still growing about 24%, and high-margin ads and services are accelerating. The big question remains: will Amazon’s record spending dent near-term profit or fuel future growth?
