Amazon had a strong quarter, but a $200 billion capex plan caused a 9% stock drop. Analysts see it as necessary to stay competitive in AI and cloud. AWS remains Amazon’s cash cow, with operating income of $12.5B in Q4. The capex is crucial for future growth despite short-term challenges.

Investors are wary of the capex’s impact and AWS growth trajectory. Amazon’s Q4 performance met expectations, but the market is debating the shift to a capital-heavy model. The $200B plan is vital for staying ahead in AI. Despite setbacks like European power-grid delays, AWS demand remains high.

Amazon’s Q1 outlook fell below expectations, emphasizing short-term volatility for long-term gains in AI and cloud. The $200B capex is a strategic move to secure future growth. Despite challenges like job cuts and regulatory scrutiny, AWS demand remains strong. The focus is on efficient capex allocation and FCF path to ensure profitable growth.

Amazon’s Q4 results highlight the importance of the $200B capex plan for future success. The focus is on efficient spending to drive billable capacity and maintain AWS growth. Investors need to monitor AWS performance, capex efficiency, and FCF path to gauge the company’s long-term prospects.

Read more at Yahoo Finance: Amazon delivers a jaw-dropper that changes the AMZN conversation