"Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and a better-than-expected growth in its prominent cloud computing unit. But the Seattle-based online behemoth's shares fell nearly 10% in after-hours trading as its profits came in slightly below analysts' expectations. Investors also didn't seem to like Amazon's announcement Thursday that it was stepping up its capital expenditure to $200 billion this year, up from $125 billion last year as it sees opportunities in artificial intelligence, robots, semiconductors and satellites."
"That's on top of a round of 14,000 job cuts in October, bringing the total to well over 30,000 since Amazon's CEO Andy Jassy first signaled a push for AI-driven organizational changes. Analysts are analyzing retailers' performances for insight into how shoppers spent during the holidays and what's in store for 2026. They also want to know how the online behemoth is managing cost increases given all the uncertainty around President Donald Trump's tariffs."
Amazon sales surged 14% in the fourth quarter, driven by strong holiday spending and better-than-expected growth in its cloud computing unit. AWS delivered 24% growth for the quarter, the fastest in 13 quarters. Shares fell nearly 10% in after-hours trading after profits missed analysts' expectations. Amazon plans to raise capital expenditures to $200 billion this year from $125 billion, citing investments in artificial intelligence, robots, semiconductors and satellites. The company announced roughly 16,000 corporate job cuts and about 5,000 retail layoffs related to store closures, bringing total cuts since October to well over 30,000. Investors are watching cost management amid tariff uncertainty and cloud competition from Microsoft and Google.
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