Amazon Beats Q4 2025 Estimates but Shares Dip on CapEx and Regulatory Concerns

Amazon reported strong financial results for the fourth quarter and full fiscal year 2025, exceeding analyst estimates for both revenue and earnings per share (EPS). The company's gross margin expanded significantly to 50.29% for the fiscal year, primarily driven by robust performance in the AWS and advertising segments. Despite these solid fundamentals, Amazon's stock price experienced downward pressure following the announcement due to sector-wide concerns. Investors expressed caution over rising capital expenditures (CapEx) and potential regulatory headwinds within the European market. However, the underlying growth in high-margin sectors suggests a resilient long-term outlook for the e-commerce and cloud giant despite the immediate market reaction.