Amazon.com, Inc. delivered mixed fourth-quarter 2025 results with revenue beating expectations but EPS narrowly missing. The company announced a substantial $200 billion capital expenditure plan for 2026, primarily driven by AI investments, which has raised investor concerns about free cash flow and near-term returns. Despite strong AWS growth and strategic AI initiatives, the stock’s premium valuation and competitive landscape suggest a “Hold” rating for now, with patience advised for new investors.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Amazon Bets Big on AI With $200B Capex: Buy, Sell or Hold the Stock?
Amazon.com, Inc. delivered mixed fourth-quarter 2025 results with revenue beating expectations but EPS narrowly missing. The company announced a substantial $200 billion capital expenditure plan for 2026, primarily driven by AI investments, which has raised investor concerns about free cash flow and near-term returns. Despite strong AWS growth and strategic AI initiatives, the stock’s premium valuation and competitive landscape suggest a “Hold” rating for now, with patience advised for new investors.