Amazon’s fourth-quarter sales surged 14%, driven by holiday spending and cloud computing growth, but shares fell 11% after hours over plans to increase capital spending by nearly 60% to $200 billion. CEO Andy Jassy sees strong long-term ROI from investments in AI, robots, semiconductors and satellites.

While Amazon is laying off about 16,000 corporate jobs and closing 5,000 retail positions, it’s investing in AI-driven organizational changes. AWS saw 24% growth in the fourth quarter, competing with Microsoft and Google’s cloud platforms.

The e-commerce giant is expanding ultra-fast delivery services like Amazon Now and same-day grocery delivery to more cities. Amazon’s net income for the quarter was $21.2 billion, with revenue reaching $213.4 billion. AWS revenue hit $35.6 billion, exceeding analysts’ expectations.

Analysts are closely watching Amazon’s performance and spending as it narrows its focus on essential services and grocery delivery. The company expects current quarter sales to be between $173.5 billion and $178.5 billion, with analysts projecting $175.6 billion.

Read more at Yahoo Finance: Amazon’s shares fall after announcing surge in capital spending but posts strong 4Q holiday sales