Amazon closed 2025 with strong results: the company reported net income of $77.67 billion, a 31% increase compared to the previous year, driven by its e-commerce operations, advertising business, and the rapid expansion of Amazon Web Services (AWS), its cloud division.
However, despite this growth, investors reacted negatively in the stock market, triggering a significant drop in the company’s share price after Amazon announced plans to invest approximately $200 billion in 2026, mainly in artificial intelligence (AI) infrastructure, data centers, chips, and robotics.
The stock sell-off reflects market concerns about whether these massive capital expenditures will generate sufficient returns in the short term, especially as AI remains in an intensive development phase. This contrasts with the solid operational performance of AWS and other Amazon divisions, which continue to show sustained growth.
Why are profits rising while the stock is falling?
Because although financial results were strong, investors are uneasy about the scale of AI investment and its potential impact on short-term profitability.