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00:02Amazon shares fell after the company said it plans to spend $200 billion this year on data centers,
00:08chips, and other equipment, according to Bloomberg. The announcement raised investor
00:13concerns about the long-term payoff of its artificial intelligence investments.
00:18Amazon reported spending about $130 billion on property and equipment in 2025,
00:24while analysts expected about $150 billion this year.
00:28Chief Executive Officer Andy Jassy said most of the spending will go to Amazon Web Services
00:33and support artificial intelligence workloads. Amazon forecasts operating income of $16.5
00:39billion to $21.5 billion for the current quarter, below the $22.2 billion average estimate.
00:47AWS revenue rose 24 percent to $35.6 billion in the fourth quarter.
00:52Shares dropped about 10 percent in extended trading after closing at $222.69.
00:59For all things money, visit Benzinga.com.
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