Amazon.com (AMZN) faces investor scrutiny after mixed results and $200 billion capex plan for 2026. DA Davidson downgrades stock, cites cloud computing lag and escalating investment. Despite diversified growth model, AMZN underperforms market benchmarks, shares down 10.2% past year. Concerns over AI competitiveness and AWS growth rate contribute to negative sentiment.

In Q4 2025, Amazon reports $213.4 billion in net sales, 14% YOY growth. AWS revenue up 24% YOY, EPS at $1.95. Full-year 2025 sees net sales reach $716.9 billion, but free cash flow declines. 2026 guidance includes $200 billion capex, aimed at AI, cloud, and robotics, impacting profitability and cash flow.

Analysts project EPS growth for fiscal 2026 and 2027, while Amazon forecasts Q1 2026 revenue of $173.5 billion to $178.5 billion. DA Davidson downgrades to “Neutral,” citing cloud computing leadership loss and strategic disadvantage. Amazon Retail’s AI readiness questioned, but overall consensus remains “Strong Buy.”

AMZN trades at a premium to sector median, below historical average. Analysts concerned about lagging AWS growth compared to rivals, highlight heavy capex to stay competitive. Despite challenges, consensus rating remains positive, with potential upside of 39.5% in price target. Street-high target at $360 suggests significant rally potential.

Read more at Yahoo Finance: As Amazon ‘Scrambles to Catch Up,’ 1 Analyst Is Jumping Ship on AMZN Stock