Amazon, the leading e-commerce giant, has disappointed investors with its announcement of a $200 billion investment plan for this year, which will cover various sectors including artificial intelligence, semiconductors, robotics, and satellites.
Following this news, the company’s stock price fell by nearly 8% in after-hours trading on Thursday.
CEO Andy Jassy stated that the company expects to see “strong long-term returns on invested capital.”
Amazon aims to solidify its presence in the artificial intelligence era through its cloud division, AWS, which is already providing significant computing power to numerous businesses.
Revenue from AWS grew by 24% year-over-year, reaching $35.6 billion in the last quarter.
Other tech companies are also heavily investing in expanding their AI capabilities. On Wednesday, Alphabet, Google’s parent company, announced an investment plan of $175 billion to $185 billion for the current year.
Meanwhile, Meta, the parent company of Facebook, intends to invest between $115 billion and $135 billion.