Amazon (AMZN) shares are down over 7% reports cite around 7-8%, with some as high as 8-9% at points in premarket. This follows the company’s Q4 2025 earnings release, where it reported a slight miss on EPS expectations but a revenue beat.
The main pressure comes from guidance for massive capital expenditures (capex) of about $200 billion in 2026, heavily focused on AI infrastructure, custom chips, robotics, and related projects. Investors are concerned that this aggressive spending—echoing similar big capex announcements from peers like Alphabet—could pressure near-term margins, cash flow, and returns, fueling broader worries about an AI investment bubble or overspending in Big Tech.
This has contributed to a tech sector sell-off, with over $1 trillion wiped from major tech stocks in recent days. If visuals of stock charts or Amazon-related imagery would help, let me know for more. Silver experienced a wick down to around $64 or in the $64 range on certain charts/levels before recovering.
Silver has been extremely volatile lately—surging to highs earlier in 2026 even touching $90+ in some reports amid strong demand and deficits, but facing sharp pullbacks and corrections.
Recent broader precious metals sell-offs including big drops in gold and silver in late January/early February tied into risk-off moves, dollar fluctuations, and profit-taking after massive rallies. The wick to $64 likely represents a temporary dip testing support levels before buyers stepped in, aligning with ongoing structural deficits in the silver market.
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China resuming rare metals exports to Japan — Recent headlines have actually focused on the opposite: China imposed restrictions and tightened controls on rare earths and related exports to Japan starting in January 2026, tied to diplomatic tensions over Taiwan remarks by Japan’s leadership and dual-use export bans.
This affected shipments of rare earths, magnets, and other critical minerals to Japanese firms. No clear reports confirm a full resumption as of early February 6; instead, ongoing curbs, screening delays, and diversification efforts by Japan persist amid strained relations.
If there’s a specific new development on resumption today, it could ease some supply concerns in Asia, but current info points more to continued friction than relief. This seems like a snapshot of risk-off sentiment in parts of the market (tech/AI spending fears, commodity volatility), though some areas like broader indices may be stabilizing or rebounding in premarket.
Amazon (AMZN) shares dropped over 7-9% in premarket and extended losses intraday, with reports of 8-10% at points, primarily due to its Q4 2025 earnings release. While revenue beat expectations ~$213B, up 13-14% YoY and AWS/cloud growth remained solid, the standout negative was guidance for ~$200 billion in 2026 capital expenditures—a massive jump from ~$125-132B in 2025.
This spending focuses heavily on AI infrastructure, custom chips, data centers, robotics, and projects like low-Earth orbit satellites like Project Kuiper/Amazon Leo. Near-term pressure on margins and free cash flow — Q1 2026 operating income guidance ($16.5-21.5B) came in below consensus (~$22B), signaling higher costs and delayed profitability from these investments.
This contributes to a broader “show-me” mode for Big Tech, where investors demand proof that massive AI outlays will deliver strong long-term returns rather than fuel an AI bubble. This follows similar huge capex announcements, contributing to a $1T+ wipeout in major tech stocks recently.
Broader indices may see rotation away from high-valuation growth/tech names toward value or defensive sectors, though some stabilization occurred as markets bounced back. Suppliers in the AI ecosystem; Nvidia, AMD for chips; data center equipment providers could see incremental demand, though near-term volatility persists if spending fears escalate.
Management emphasizes “strong long-term ROIC,” but skeptics worry about overinvestment amid elevated valuations. This could cap upside for AMZN and peers until results prove the bets pay off.