From Nasdaq: 2025-02-09 04:47:00

Amazon’s projected sales for Q1 2025 are lower than expected, suggesting a slowdown. However, a significant increase in capital expenditures, mainly for AI, is planned, totaling around $100 billion. This substantial investment may impact short-term earnings, but it demonstrates Amazon’s commitment to long-term growth and market dominance.

CEO Andy Jassy believes the surge in capex is positive, indicating Amazon’s focus on meeting growing demand for AI services. He sees AI as a transformative opportunity, predicting a significant shift in business operations. Despite the impact on short-term earnings, Jassy’s vision for AI innovation reinforces Amazon’s position in the cloud services market.

Jassy expects capacity constraints to ease in the second half of 2025, potentially boosting AWS growth. The integration of cost-effective AI models like DeepSeek’s R1 and ongoing efforts to reduce AI training costs show Amazon’s commitment to innovation. These developments support the case for Amazon’s significant capital investments and long-term growth potential.

Investors considering Amazon stock should weigh the company’s AI investments and long-term growth prospects. While Amazon’s capex surge may affect short-term earnings, the focus on AI innovation and capacity expansion bode well for future growth. The company’s commitment to remaining at the forefront of cloud services and technology shifts strengthens its position in the market. 1. The stock market reached record highs today, with the Dow Jones Industrial Average surging 500 points to close at 35,000. This marks the highest close in history for the index, fueled by strong corporate earnings and optimism about economic recovery.

2. In other news, a new study found that 80% of Americans plan to travel this summer, with 60% of them opting for domestic destinations. The top choices for travel include beach resorts, national parks, and cities with outdoor activities.

3. On the political front, President Biden announced a $2 trillion infrastructure plan aimed at creating millions of jobs and rebuilding the country’s aging infrastructure. The plan includes investments in transportation, broadband, clean energy, and affordable housing over the next 8 years.



Read more at Nasdaq: 100 Billion Reasons to Buy Amazon Stock Hand Over Fist Right Now