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Amazon.com Inc. shares fell 2.54% to $204.78 in morning trading on Feb. 23, down $5.33 from the prior close of $210.11.
Amazon stock dropped early from the $208 area and then steadied near $205, which showed selling pressure at the open and a modest intraday rebound.
This comes after the stock gained 5.93% over the last five sessions. The broader move still points to renewed selling after a choppy stretch for the shares.
Investors continue to price in Amazon’s plan to lift capital spending to about $200 billion in 2026. Management has linked most of that outlay to data centers and infrastructure for AI-driven cloud demand. The scale of the plan has made AMZN sensitive to any signal on returns and timing.
Chief Executive Andy Jassy addressed expected concerns and pointed to AWS demand signals. He said Amazon has “deep experience understanding demand signals” in AWS and expects to convert capacity into returns. Markets have treated that message as a guide for how Amazon expects to monetize the buildout.
Amazon’s latest results show why AWS remains central to the Amazon stock. The company reported $716.9 billion in 2025 net sales, up from $638.0 billion in 2024. Operating income rose to $80.0 billion in 2025, which gave Amazon more room to fund large investment cycles.
AWS delivered much of the margin narrative. Amazon reported $128.7 billion in sales for 2025, up 20% year over year. In the fourth quarter, AWS sales reached about $35.6 billion, up 24% year over year. Those figures help explain why many investors still tie AMZN’s valuation to cloud execution.
Advertising adds another earnings lever. Amazon reported $21.3 billion in fourth-quarter advertising revenue, up about 22% year over year.
Amazon Ads has also highlighted Prime Video’s scale, citing an average monthly ad-supported reach of more than 315 million globally, based on internal data shared at unBoxed 2025.
Also Read: Amazon Stock Plunges After Announcing $200 Billion AI Spend
A high-profile filing also put AMZN on more investors’ radar. Baupost Group reported a new Amazon position of 2,121,391 shares valued at $489,659,000 in its 13F information table for the quarter ended Dec. 31, 2025. The filing date was Feb. 13, 2026.
Amazon also expanded its presence in India with a large office opening in Bengaluru, Karnataka. Reports described a 12-floor campus spanning about 1.1 million square feet, designed to support more than 7,000 employees across e-commerce, payments, technology, and seller services. Karnataka minister M.B. Patil said large campuses can strengthen the local ecosystem and support India’s digital economy.
Moreover, trade policy remains another variable for Amazon stock as it can affect seller costs and consumer pricing. US Customs and Border Protection said it will stop collecting certain tariffs imposed under the International Emergency Economic Powers Act at 12:01 a.m. ET Tuesday, following a Supreme Court ruling. Separately, the White House has pointed to Section 122 authority for a temporary import surcharge that can run up to 15% for up to 150 days unless Congress extends it.
