Amazon (AMZN) Plunge as AI Capex Surge Intensifies Tech Sector Sell-Off

Amazon (AMZN) fell 8% in premarket trading on February 06, 2026, as investors weighed the company’s $200 billion capital expenditure plan for 2026 within the broader $600+ billion annual AI spending by Big Tech. Rising AI spending has raised doubts about near-term returns and squeezed traditional software demand, pressuring profit margins and sending tech shares lower. AWS revenue rose to $35.6 billion in the December quarter, but CEO Andy Jassy cautioned against overconfidence from smaller bases. Benchmark P/E for AMZN is 27.01, versus Microsoft (MSFT) at 21.62 and Alphabet (GOOGL) at 28.36. At least five brokerages have lowered price targets on AMZN following the earnings call.