Amazon Stock Tumbles as $220 Billion Spending Plan Raises Red Flags

Amazon's stock price has plummeted from an all-time high of $287 to below $250 as investors reassess the company's data center buildout costs and earnings momentum.

The sharp drop comes on the heels of Amazon's announcement that it will spend up to $220 billion in 2026, a significant increase from its earlier estimate of $200 billion. This massive expenditure is aimed at expanding Amazon Web Services (AWS) infrastructure, with a new supply agreement with Generac Holdings worth up to $8 billion.

The deal, which includes initial deliveries valued at $2.4 billion in 2027 and 2028, highlights the enormous physical footprint of AWS' AI and cloud ambitions. Every new data hall requires power, cooling, networking, and backup generation before servers can go online, making deals like this a proxy for Amazon's infrastructure needs.