AMZN stock down tech market crash 2026 explained: Amazon stock crashes after $200 billion AI spending shocks investors – Why AMZN, MSFT, NVDA, META, GOOG and ORCL shed $1 trillion amid tech bubble fears
Amazon shares (AMZN) fall as capital spending forecasts shock investors
This sale follows Amazon’s fourth-quarter earnings report, in which the company said capital spending could reach $200 billion in 2026. That figure was $50 billion above analysts’ expectations and caught markets off guard at a time when investors were already nervous about how much Big Tech was spending on artificial intelligence, according to the CNBC report.
How does Amazon’s spending compare to its Big Tech rivals?
Amazon’s warning comes at a time when many major technology companies continue to increase their investments. Alphabet, Microsoft and Meta signaled that their heavy spending will continue. Amazon, Alphabet, Microsoft and Meta spent nearly $120 billion on capital expenditures in the fourth quarter alone, according to a CNBC report, and that total could rise to more than $660 billion this year.
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Wall Street reacts unevenly to Big Tech’s capital spending plans
Despite the magnitude of spending in the industry, Wall Street’s reaction has been uneven. While investors largely welcomed Meta and Alphabet’s spending outlooks, Amazon and Microsoft saw their shares come under pressure.
Last week, Amazon, Microsoft, Nvidia, Meta, Google and Oracle lost approximately $1.35 trillion in combined market value, according to FactSet data.
The reason for AMZN stock crash: Why Amazon’s $200 billion spending plan shook markets.
The decline in Amazon’s shares reflects broader fears about the development of artificial intelligence. Paul Markham, chief investment officer at GAM Investments, told CNBC that companies tied to AI hardware and infrastructure will see continued volatility as investor sentiment changes. “Questions about the size of capex as a result of increases in LLM, its ultimate return, and fears of eventual over-expansion of capacity will persist,” Paul said, as quoted by CNBC. While Amazon’s management has expressed confidence in long-term returns on its investments, analysts say the lack of clarity is weighing on the stock. “All of a sudden we went from fearing that you might not be last to investors questioning every angle in this AI race,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, as quoted by CNBC.
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AMZN stock price prediction: Monness lowers Amazon stock price target but maintains Buy rating
Meanwhile, analysts at Monness, Crespi and Hardt lowered their price target on Amazon AMZN stock from $300 to $280 but maintained a Buy rating, according to an Investing.com report. The firm emphasized Amazon’s confidence in AWS, which has delivered the highest annual growth rate since the third quarter of 2022, and its optimism about artificial intelligence opportunities.
AWS growth offers a bright spot for Amazon investors
Amazon is also preparing to accelerate major projects with Anthropic and OpenAI in 2026, adding another layer of AI-related activities for its enterprise customers. Although the planned $200 billion in capital spending represents a 52% increase from the previous year, Monness noted that the growth rate is still lower than what rivals Alphabet and Meta had planned.
FAQ
What worried investors about Amazon’s earnings report?
Limited clarity on the scale of future AI-related spending and when returns might be realized.
Is Amazon alone in increasing AI spending?
No. Alphabet, Microsoft and Meta also signaled that intensive investments will continue.
