TLDR
- Amazon shares climb as its $200 billion AI spending plan supports momentum
- AWS records 28% growth while Amazon cuts 16,000 jobs through automation tools
- Bezos predicts labor scarcity even as AI-related layoffs keep accelerating
- AMZN approaches $250 resistance after breaking above key support levels today
- AI leaders advance, while Microsoft’s decline exposes wider execution risks
Amazon (AMZN) shares gained 1.58% to $249.23 as the company expanded artificial intelligence spending while reducing its workforce. The stock moved above $245.34 support and approached $250 resistance during a volatile morning session. Meanwhile, Amazon’s strategy highlights the tension between productivity, spending, and employment losses.
Amazon Expands AI Spending as Workforce Shrinks
Amazon plans about $200 billion in 2026 capital expenditures for data centers, chips, and cloud infrastructure. The company spent $44.20 billion as AWS demand accelerated. Amazon also cut 16,000 jobs in January and linked automation to the restructuring.
AWS generated $37.59 billion in first-quarter revenue, representing 28% annual growth. That pace marked its fastest expansion in 15 quarters and supported investment. Chief Executive Andy Jassy also reported faster internal development after teams adopted automation tools.
One service rebuild previously required about 40 employees and one year. A five-person team completed the project within 65 days, showing efficiency gains. Amazon may need fewer workers for some tasks while cloud demand supports other roles.
Bezos Predicts Labor Scarcity Despite Layoffs
Jeff Bezos argued that rising productivity will lower costs and create wider demand. He compared current changes with earlier technologies that reshaped work instead of ending employment. Recent labor figures show companies continue removing roles while adopting new systems.
Technology companies cut more than 115,000 jobs through May 2026, reflecting pressure across several business areas. US employers linked 38,579 May job cuts to automation, about 40% of the reductions. Goldman Sachs also estimated that these systems remove roughly 16,000 American jobs monthly.
Unemployment stood at 4.2%, while job openings reached 7.59 million. Gartner expects technology to create more roles than it removes from 2028. Consequently, Bezos’s forecast depends on stronger demand, retraining, and new roles across expanding sectors.
Amazon Stock Holds Momentum Near $250
Amazon shares traded near the session high after breaking above the $245.34 support level. The $247.50 area now provides support, while $250 remains the next resistance point. A sustained move above that level could extend momentum despite sharp intraday swings.
Amazon stock has gained about 6% during 2026 as markets assessed cloud growth and spending plans. NVIDIA rose about 13% year to date, w hile Broadcom gained nearly 16%. By contrast, Microsoft fell about 20%, showing uneven returns across technology companies.
Coursera could benefit from retraining demand as companies change job requirements and deploy more automation. The platform recorded more than 20 generative technology enrollments each minute. However, Coursera shares fell 22.42% year to date as slower enterprise growth outweighed course demand.
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