Amazon shares drop 4.6% as Alphabet and Tesla raise spending plans

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Summary · why it matters

Amazon shares fell about 4.6% on Thursday without the company reporting any results of its own. The decline was driven by other companies' earnings reports, as Alphabet raised its 2026 capital spending guidance to as high as $205 billion and Tesla said its own capital spending will exceed $25 billion this year. Amazon has an expected capital expenditure plan of about $200 billion for 2026, and investors are concerned its spending number could move meaningfully higher when it reports second-quarter results on July 30. Amazon's free cash flow for the trailing 12 months had already fallen to $1.2 billion as of the first quarter, down from $25.9 billion a year earlier. However, Amazon Web Services grew revenue 28% year over year in the first quarter to $37.6 billion, its fastest growth in 15 quarters.