As a result of the quarterly report publication, shares of Amazon, one of the largest IT giants in the U.S., experienced a sharp decline. On February 5, NASDAQ saw the company's stock drop by 10% at the beginning of evening trading; however, by the end of the main session, the decline was 4.4%, according to a Bloomberg report.
Despite this, the financial results met analysts' expectations: revenue increased by 14% to reach $213.4 billion, while net profit amounted to $21.2 billion.
The primary reason for the stock decline was Amazon's ambitious plans for investments in artificial intelligence, including the purchase of chips, equipment, and the construction of new data centers. Investors express concerns that such large-scale expenses may not yield the expected returns, even in the long term.
Preliminary estimates suggest that by 2026, the company's investment volume could reach around $200 billion. Part of this funding will be used to launch satellites that will compete with SpaceX's Starlink system, but the majority will be directed towards AI projects.
Amazon's CEO Andy Jassy emphasized in a conversation with analysts that the company will continue to actively invest in artificial intelligence, aiming to take a leading position in the market. However, investor reactions were contrary: doubts are growing in the market about whether such a large-scale investment race will deliver the expected returns.
Similar trends are observed among other major tech companies. Microsoft and Alphabet also faced stock declines following reports of increased spending on AI, with Microsoft's stock drop being one of the most significant in the company's history.
