{"version":1,"type":"story","url":"https://digestai.news/story/amazon-stock-climbs-3-after-ai-spending-sparks-selloff","json":"https://digestai.news/story/amazon-stock-climbs-3-after-ai-spending-sparks-selloff.json","markdown":"https://digestai.news/story/amazon-stock-climbs-3-after-ai-spending-sparks-selloff.md","slug":"amazon-stock-climbs-3-after-ai-spending-sparks-selloff","headline":"Amazon stock climbs 3% after AI spending sparks selloff","summary":"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.\n\nInvestors 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.","keyPoints":["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"],"whyItMatters":"AWS’s rapid growth offsets AI spending concerns, but investors will watch if higher costs translate into sustained profitability.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Amazon","Amazon Web Services","Intel","Alphabet","Anthropic","UBS"],"models":[],"people":["Andy Jassy","Jim Cramer"]},"firstPublishedAt":"2026-11-02T03:44:00Z","updatedAt":"2026-11-02T03:44:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"ibtimes.com.au","title":"Amazon Stock Rebounds Nearly 3% After Post-Earnings Selloff as Investors Weigh AWS Surge Against AI Spending","url":"https://ibtimes.com.au/amazon-shares-rebound-after-ai-spending-selloff-1877768","publishedAt":"2026-11-02T03:44:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"Amazon Secures Massive AI Infrastructure Loan","url":"https://digestai.news/thread/amazon-sets-up-80-billion-supplier-loan-to-fund-ai-spending","storyCount":3},"cite":{"text":"Digest AI, \"Amazon stock climbs 3% after AI spending sparks selloff\", 2 November 2026, https://digestai.news/story/amazon-stock-climbs-3-after-ai-spending-sparks-selloff","publisher":"Digest AI","title":"Amazon stock climbs 3% after AI spending sparks selloff","datePublished":"2026-11-02T03:44:00Z","url":"https://digestai.news/story/amazon-stock-climbs-3-after-ai-spending-sparks-selloff"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}