amazon launches google while meta expands its platform

Key Takeaways

• Amazon plans to spend $200 billion in 2026, mainly on AI infrastructure, causing its shares to drop by 4.4% to 10% due to investor concerns over high costs.
• Amazon Web Services (AWS) reported 24% sales growth in Q4, reaching $35.6 billion, despite investor worries about the company's large AI investments.
• Palantir Technologies is seeing explosive demand for its AI platforms, with US commercial sector revenue increasing by 137%.
• Palantir's stock has a high forward price-to-earnings ratio of about 160, raising valuation concerns despite strong AI demand.
• Over $1 trillion has been wiped from Big Tech stocks, including Amazon, Microsoft, Nvidia, Oracle, Meta, and Alphabet, due to fears about massive AI spending.
• The Dow Jones Industrial Average reached 50,000, with Apple among the leading companies, suggesting improved market sentiment for AI-related stocks.
• Caterpillar Inc. expanded its involvement in AI data center infrastructure through an alliance for the Monarch Compute Campus.
• Online travel agencies like Booking Holdings and Expedia Group are experiencing stock declines due to AI fears, but are investing in their own AI tools.
• Analyst Daniel Ives recommends Palantir and Snowflake stocks, believing fears about AI automating jobs are exaggerated.
• Analyst Tom Yeung suggests PayPal could become the "Apple of AI" as the industry's focus shifts from infrastructure to user experience.

Amazon plans $200 billion AI investment for 2026

Amazon plans to spend $200 billion in 2026, mainly on boosting its AI efforts. CEO Andy Jassy defended this large investment, highlighting Amazon Web Services AWS growth of 24% to $35.6 billion in the December quarter. Despite this, Amazon's shares fell 4.4% as investors worried about the high costs of the AI boom. The company also expects first-quarter operating income between $16.5 billion and $21.5 billion. Amazon is also investing in e-commerce and its advertising business, which saw a 22% jump in sales to $21.3 billion in Q4.

Amazon shares drop after $200 billion AI investment news

Amazon's shares fell 4.4% after the company announced plans to spend $200 billion on capital expenditures in 2026, a significant increase from $131 billion in 2025. This large investment, mainly for AI efforts, worried investors about the high costs. CEO Andy Jassy defended the spending, pointing to Amazon Web Services AWS strong 24% sales growth in the fourth quarter. However, the company's first-quarter profit forecast of $16.5 billion to $21.5 billion also fell below analyst expectations. Other tech giants like Google and Meta also plan huge AI spending, but Amazon's forecast caused more concern.

Amazon commits $200 billion to AI infrastructure this year

Amazon announced plans to spend $200 billion in 2026 on data centers, chips, and other equipment, mostly for its Amazon Web Services AWS cloud unit and AI workloads. This news caused Amazon's shares to drop by as much as 10% as investors worried about the high costs. CEO Andy Jassy sees this as a unique chance to grow AWS and Amazon. The company's forecast for current quarter operating income also fell below analyst estimates. While a large part of the spending is for AI, some funds will also go to its satellite internet, robotics, and Whole Foods stores.

Palantir sees huge AI demand but faces valuation concerns

Palantir Technologies is experiencing high demand for its AI-powered platforms, especially in the US commercial sector, which saw a 137% revenue increase. The company's products, Gotham and Foundry, help organizations use AI to understand data and make decisions. Palantir's unique approach involves tailoring its platforms and embedding engineers with clients, creating a strong competitive advantage. However, its stock has a very high forward price-to-earnings ratio of about 160, which worries some investors. Sustaining its current growth rate globally will be a challenge, as international growth has slowed.

Palantir stock rises on strong AI demand but high valuation

Palantir Technologies reported excellent fourth-quarter earnings on February 2, driven by explosive demand for its AI platforms, particularly in the US commercial sector which grew 137%. The company's Gotham and Foundry products help large organizations manage data and make decisions with AI. Palantir's unique strategy of customizing its platforms and embedding engineers creates a strong competitive edge. Despite its success, the stock's high forward price-to-earnings ratio of 160 raises concerns about its valuation. Sustaining rapid growth outside the US, where growth has slowed, remains a key challenge.

Caterpillar boosts AI power and sees record growth

Caterpillar Inc. reported strong financial results for the fourth quarter of 2025, with revenue reaching US$19,133 million. The company's full-year revenue for 2025 was US$67,589 million. Caterpillar expects sales and revenues in 2026 to grow near the top of its 5% to 7% long-term target. It also expanded its involvement in AI data center infrastructure through a power-generation alliance for the Monarch Compute Campus.

AI fears slam Booking and Expedia stock

Online travel agencies like Booking Holdings and Expedia Group have seen their stock prices fall due to worries about AI. While AI can help personalize travel and streamline bookings, there are fears that AI chatbots could allow travelers to book directly, bypassing these platforms. However, these companies have strong brand recognition and customer loyalty. They are also investing in their own AI tools to improve customer experience and search capabilities. The complexity of the travel industry and the need for consumer protection also favor established online travel agencies.

Amazon stock falls as huge AI spending worries investors

Amazon's shares dropped significantly after the company announced plans for much higher spending this year on AI infrastructure. US tech giants, including Amazon, expect to invest over $630 billion in data centers and AI chips, an unprecedented amount. Investors worry if these massive investments will bring enough returns, drawing comparisons to the dot-com boom. Amazon CEO Andy Jassy defended the spending, noting that Amazon Web Services AWS is a much larger business than its rivals, making its 24% growth impressive. However, analysts warn that the margin for error with such large investments is shrinking.

Analyst Daniel Ives recommends Palantir and Snowflake AI stocks

Daniel Ives, a top analyst from Wedbush Securities, recommends buying Palantir PLTR and Snowflake SNOW stocks despite a recent software sell-off. He believes investor fears about AI automating jobs are exaggerated, calling the market's reaction an "Armageddon scenario" that is far from reality. Palantir, a data management and analytics company, offers its AI Platform AIP, which uses AI for easy user interaction. The company reported strong financial results for 2025, with full-year US revenue up 75% to $3.32 billion and total revenue reaching $4.475 billion.

Dow Jones hits 50000 with Apple and Boeing leading gains

The Dow Jones Industrial Average reached 50,000 for the first time on Friday, showing strong investor confidence. Major companies like Apple, Boeing, and JPMorgan Chase performed well, signaling potential for further growth. This milestone suggests a possible comeback for AI-related stocks and a broader market recovery. The Dow's rise could attract more investments and improve market sentiment. Strong company earnings, good economic signs, and new excitement for AI technology are creating a positive market environment.

PayPal could become the Apple of AI says analyst

Analyst Tom Yeung suggests PayPal Holdings Inc. PYPL could become the "Apple of AI" as the industry shifts focus from infrastructure to user experience. He compares the current AI market to the early internet, where companies overspent on building infrastructure before user experience became key. While many "Stage 1" AI companies like Intel and AMD are seeing stock declines, the "Stage 2" phase will prioritize product quality. PayPal's stock recently plummeted 20% to its lowest since 2017 after poor guidance and firing its CEO, Alex Chriss.

Amazon's $200 billion AI spending worries investors

Amazon announced a massive $200 billion capital expenditure projection, significantly higher than analyst estimates and its 2025 spending. This huge investment, mainly for AI, has caused investor concern and contributed to a tech sell-off. While some analysts believe the market is overreacting, others see it as a sign of careful market judgment rather than irrational excitement. Amazon's spending dwarfs that of rivals like Google and Meta, raising questions about AI valuations and potential overspending in the sector.

AI spending fears wipe over $1 trillion from Big Tech stocks

Fears about massive AI spending have caused over $1 trillion to be wiped from Big Tech stocks, including Amazon, Microsoft, Nvidia, Oracle, Meta, and Alphabet. Amazon's shares plunged 9% after it projected $200 billion in capital expenditures for 2026, far exceeding expectations. Analysts are concerned about the extent of these investments and whether they will yield sufficient returns, comparing the situation to a "binary bet." Some analysts even downgraded Amazon's stock, citing worries about its cloud dominance and AI's potential impact on its retail business.

Sources

• Amazon projects $200 billion in capital spending this year
• Amazon shares tumble as $200B AI spending spree rattles investors
• Amazon Says It Will Spend $200 Billion This Year on AI Build-Out
• Should You Buy the Dip on This Artificial Intelligence (AI) Stock?
• Should You Buy the Dip on This Artificial Intelligence (AI) Stock?
• Caterpillar’s AI Power Push And Record Backlog Might Change The Case For Investing In CAT
• AI Fears Slam Booking and Expedia Stock. Why They Can Bounce Back.
• Amazon shares sink as Big Tech's AI spending plans worry investors
• PLTR and SNOW: Daniel Ives Names His Top AI Stocks to Buy Amid a “Software Garage Sale”
• Dow Jones tops 50,000 as Apple, Boeing, JPMorgan flash buy signals; is AI trade reviving?
• Why This Stock Could Become the “Apple of AI”
• CNBC Daily Open: Amazon one-ups its rivals on capex spending, but investors are already worried over AI valuations
• Big Tech sees over $1 trillion wiped from stocks as fears of AI bubble ignite sell-off