AMZN Stock Falls To 8-Month Lows In Pre-Market After Declining Below 200-DMA For First Time Since October

Cantor Fitzgerald noted that Amazon’s $200 billion capital expenditure plans could reignite concerns around long-term return on invested capital.

• Cantor Fitzgerald lowered Amazon’s price target to $250 and maintained an ‘Overweight’ rating.
• TD Cowen cut Amazon’s price target to $300, kept a ‘buy’ rating, and said investors will focus on its record capital spending.
• Amazon expects first-quarter revenue to grow between 11% and 15%.

Shares of Amazon.com Inc (AMZN) slumped nearly 8% in premarket trading on Friday, as analysts raised concerns over the company’s massive capital expenditure plans for 2026, on the back of an earnings miss in the fourth quarter.

AMZN stock extended losses from Thursday, when it closed 4.4% lower, and fell below its 200-day moving average (200-DMA) for the first time since Oct. 20, 2025. It was also the stock’s biggest intraday decline in more than two months.

If the pre-market level holds, the stock will open at its lowest levels since June 4, 2025.

Massive Capex Spend  

On Thursday, Amazon reported earnings per share of $1.95, up from $1.86 a year earlier but slightly below analyst expectations of $1.97, according to Stocktwits data. Revenue rose 14% to $213.4 billion, topping the Street’s estimate of $211.44 billion.

Going forward, the company expects revenue for the first quarter (Q1) of FY2026 to grow between 11% and 15%, while operating income is projected between $16.5 billion and $21.5 billion, compared with $18.4 billion in the same period last year.

One of the key highlights was Amazon announcing a more than 50% increase in capital expenditure for 2026, allocating $200 billion for what the management described as “strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low-earth orbit satellites.”

Concerns Around Long-term Return

Cantor Fitzgerald lowered Amazon’s price target to $250 from $260 and maintained an ‘Overweight’ rating, according to The Fly. The brokerage said that while AWS growth and continued retail margin expansion led to a revenue beat, softer-than-expected Q1 earnings guidance and the FY26 capex outlook of $200 billion may “reignite concerns around long-term return on invested capital.”

TD Cowen analyst John Blackledge cut Amazon’s price target to $300 from $315 and kept a ‘Buy’ rating, adding that investors will focus on its “record” capital expenditures.

How Did Stocktwits Users React?

Despite the sharp sell-off, retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

User reactions were mixed. While some users thought the capex spend was “great news for the future,” others discussed why it could hurt margins.

The stock has declined more than 6% over the past year.

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