Amazon Shares Fall 4% on AI Capex and AWS Disruption

Amazon.com Inc. shares tumbled more than 4 percent on Friday, closing at $199.34 after opening at $207.54, as investor concerns mounted over the company's escalating artificial intelligence investments and an operational disruption at its cloud computing unit in the Middle East. The decline outpaced broader market losses, with the S&P 500 falling 1.67 percent to 6,378.85 and the Nasdaq Composite dropping 2.15 percent to 20,948.36. Trading volume for Amazon reached 55.4 million shares, about 13 percent above its three-month average of 49.1 million.

The selloff reflects growing unease about Amazon's planned capital expenditures, which executives have projected at around $200 billion for 2026, up sharply from $131.82 billion in 2025. Much of the spending targets AI infrastructure, including data centers, custom chips and cloud capacity expansions through Amazon Web Services, or AWS. While CEO Andy Jassy has expressed confidence in the strategy, stating the company anticipates "strong long-term return on invested capital," investors appear focused on near-term pressures. Amazon's free cash flow for 2025 fell 66 percent year-over-year to $11.19 billion, as capital outlays outpaced...