Several major technology companies have reported a surge in AI-related capital spending in recent quarters, prompting a sell-off among investors who question whether the investments will generate timely returns. According to reports, Amazon shares plunged more than 10% in extended trading after the company announced a $200 billion capital expenditure plan. Meta’s stock also fell after the contents of a leaked internal memo were made public. Analysts now say that companies face growing pressure to demonstrate that the spending will lead to revenue growth.
Record Capital Expenditure Triggers Investor Unease
Microsoft, Alphabet, Amazon, and Meta each disclosed rising capital expenditure, citing the need for data centers and hardware to power artificial intelligence. Amazon’s $200 billion spending plan was detailed in a report by NaturalNews.com, which noted that shares dropped sharply after the announcement [1]. A leaked Meta internal memo, reported by Reuters, showed the company plans to double its AI capacity to 14 gigawatts, causing the stock to slide 4.3% in early trading [2].
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