1642 ET - Amazon expects its capital expenditures to be $200 billion in 2026, setting the sky-high benchmark for AI spending even higher. Chief Executive Andy Jassy said the capital expenditure plans address strong demand for Amazon's existing offerings and "seminal opportunities," such as AI, chips, robotics and low earth orbit satellites. The forecast tops the capex forecasts of other Magnificent 7 companies, whose 12-figure spending projections have raised questions about whether AI's return on investment will bring enough bang for their billions of bucks. Jassy said Amazon's leaders "anticipate strong long-term return on invested capital." Shares fall 9% after hours. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

February 05, 2026 16:42 ET (21:42 GMT)

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