Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and a better-than-expected growth in its prominent cloud computing unit. But shares fell 11% in after hours trading on Thursday as investors appeared to be spooked by the Seattle-based tech company's plans to increase capital spending by nearly 60%

Amazon on Thursday projected a surge of more than 50% in capital expenditures this year, joining its peers in a spending spree to build out artificial-intelligence infrastructure, and sending its shares down 9% in after-hours trading.

Amazon provided an inline first-quarter revenue outlook, but the guidance on profitability was below Wall Street forecasts. The company said it expects net sales for the current quarter of between $173.

Amazon on Thursday reported fourth-quarter earnings that fell below Wall Street’s estimates, sending shares of the e-commerce giant plummeting in after-hours trading following its earnings report that included a projection for a massive $200 billion in spending for 2026.

Following Alphabet's Wednesday projection of $175 billion to $185 billion in capital spending for this year, Amazon just predicted that it will spend even more. Amazon forecast $200 billion in capital spending for 2026,

Amazon shares sank over 9% in after-hours trading on Thursday as the tech and e-commerce giant reported mixed results for its fourth quarter and a 50% spending increase of $200 billion in capital expenditures for 2026.