On Thursday, Amazon.com, Inc. (NASDAQ:AMZN) shares slid sharply in after-hours trading despite a fourth-quarter revenue beat.
Amazon Beats Q4 Revenue, Guides In Line
Amazon reported fourth-quarter net sales of $213.39 billion, up 14% year over year and ahead of Wall Street expectations of $211.30 billion, according to Benzinga Pro.
The company guided first-quarter revenue to a range of $173.5 billion to $178.5 billion, roughly in line with consensus estimates.
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$200 Billion AI Spending Plan Spooks Wall Street
The stock’s selloff came after CEO Andy Jassy highlighted Amazon’s massive investment ambitions, saying the company expects to spend about $200 billion in capital expenditures in 2026.
The investments will target artificial intelligence infrastructure, custom chips, robotics and satellite networks.
Amazon closed down 4.42% at $222.69 on Thursday and fell another 11.20% to $197.75 in after-hours trading, according to Benzinga Pro.
Analysts Push Back On The Selloff
Deepwater Asset Management’s Gene Munster argued the market reaction misses the bigger picture.
He said that Amazon’s projected 54% capex growth in 2026 brings it closer to peers like Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Meta Platforms, Inc. (NASDAQ:META).
“My takeaway…the market is largely missing the point,” he stated.
More capex is a good thing for both the companies that are spending more and the broader AI trade. Market disagrees with me. $AMZN capex growth in 2026 projected to be 54%. Whisper was it was going to 40% up from 18% in-print.
Here’s where we stand if they hit the high end…
— Gene Munster (@munster_gene) February 5, 2026
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Jim Cramer: The Spend ‘Can Be Justified’
CNBC’s Jim Cramer acknowledged near-term pressure on the stock but defended the rationale behind the spending.
“I’m not going to say Amazon’s overdone on the downside because I figure tomorrow’s pretty ugly,” Cramer said on X, adding that there is “a reason for the spend that can be justified.”
I am not going to say Amazon’s overdone on the downside because i figure tomorrow’s pretty ugly. I am saying that there’s a reason for the spend that can be justified
— Jim Cramer (@jimcramer) February 5, 2026
Is Amazon Playing Catch-Up In AI
While speaking with Yahoo Finance, Futurum Group CEO Daniel Newman said Amazon was initially slower than rivals in AI but is now gaining momentum as AWS customers adopt new AI tools.
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He added that Amazon may be one of the largest beneficiaries of AI not just through cloud services, but also across advertising, logistics, robotics and commerce.
AWS generated $35.6 billion in fourth-quarter revenue, up 24% year over year, while operating income from the cloud unit rose to $12.5 billion from $10.6 billion a year earlier; for the full year, AWS revenue increased 20% to $128.7 billion.
Amazon shares rank highly on Quality in Benzinga’s Edge Stock Rankings and show a positive price trend across the short, medium and long-term time frames.
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This article Jim Cramer On Amazon Stock Slip: Not Saying Downside Overdone, 'I Figure Tomorrow's Pretty Ugly' originally appeared on Benzinga.com
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