The Masses Will Ignore Amazon But I Am Me Buying More Now
The article argues that despite market concerns over Amazon's massive capital expenditures (capex) in 2026, the investment is strategically building the compute layer for the AI economy. Key highlights include AWS growing 28% YoY on a $150 billion run rate, Amazon's custom silicon (Trainium) topping a $20 billion revenue run rate with commitments from OpenAI and Anthropic, and a $364 billion AWS backlog. The author notes that while free cash flow has dropped 95% to $1.2 billion due to $200 billion in planned capex, the long-term backlog and AI demand justify the spending. Amazon's Q1 EPS beat estimates by 68%, and the stock has 62 analyst buy ratings with a target of $312.87. The article also compares Amazon favorably to Microsoft, Alphabet, Walmart, and Meta in AI and cloud capabilities.
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