Amazon stock climbs 3% after AI spending sparks selloff
Amazon shares rose nearly 3% on Monday, rebounding after a post-earnings selloff last week. However, capital spending hit $77 billion, far exceeding analyst expectations, and Amazon expects to spend about $220 billion in 2026, with more planned for 2027.
Key points
- Amazon’s Q3 revenue grew 12% to $201.9 billion, with AWS revenue up 39% to $46 billion
- Capital spending hit $77 billion, far exceeding expectations, with $220 billion planned for 2026
- Analysts like UBS raised their price target to $352, but investors question AI spending payoff
Investors remain divided: while analysts like UBS raised their price target to $352, concerns persist over whether AI investments in chips, data centers, and Anthropic will yield long-term returns. The broader tech selloff, including declines in Intel and Alphabet, also weighed on sentiment. Amazon’s stock has only gained about 4% this year, trading at roughly 34 times trailing earnings.
The story so far
3 episodes →- Amazon stock climbs 3% after AI spending sparks selloffthis story
Amazon Stock Rebounds Nearly 3% After Post-Earnings Selloff as Investors Weigh AWS Surge Against AI Spending
ibtimes.com.au · 2 November 2026
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