# Amazon stock climbs 3% after AI spending sparks selloff

Digest AI · Business & Funding · published 2026-11-02T03:44:00Z

Canonical: https://digestai.news/story/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.

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.

## 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

## Why it matters

AWS’s rapid growth offsets AI spending concerns, but investors will watch if higher costs translate into sustained profitability.

## Sources

1. [Amazon Stock Rebounds Nearly 3% After Post-Earnings Selloff as Investors Weigh AWS Surge Against AI Spending](https://ibtimes.com.au/amazon-shares-rebound-after-ai-spending-selloff-1877768) (ibtimes.com.au, 2026-11-02)

Part of the developing story: [Amazon Secures Massive AI Infrastructure Loan](https://digestai.news/thread/amazon-sets-up-80-billion-supplier-loan-to-fund-ai-spending) (3 stories)

## Cite

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

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