More expensive AI investments for Amazon - stock falls

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More expensive AI investments for Amazon - stock falls
Photo: Damian Dovarganes

E-commerce and tech giant Amazon reported mixed fourth-quarter results. Announcements of additional spending on the company's already massive AI efforts were not well received in after-hours trading on Wall Street.

The company's revenue forecast was $211.5 billion, according to Bloomberg; it was exceeded. Sales were $213.4 billion.

Earnings per share came in at $1.95, slightly lower than the expected $1.96.

In a comment, Amazon CEO Andy Jassy said that the costs of AI-related investments, such as data centers, chips and satellites, are expected to increase in 2026.

Capital expenditures are forecast to reach $200 billion this year, equivalent to just over SEK 1,800 billion, and will affect profits.

Half an hour after the report was released, Amazon's stock had fallen about 9 percent on the New York Stock Exchange.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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