Amazon’s stock fell due to capex plans, despite strong cloud computing growth. AWS revenue accelerated to $35.58 billion, with operating income rising to $12.5 billion. Amazon will increase capex spending to $200 billion in 2026 for AI data centers. North America sales rose 10% to $127.1 billion, with international sales up 17%.

While Amazon’s stock dropped, it presents a buying opportunity. AWS revenue is growing, e-commerce operations show leverage, and the stock has an attractive valuation. Forward price-to-earnings ratio is about 26 times 2026 estimates. Expect the stock to increase by year-end, making it a good buy now.

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Read more at Nasdaq: Prediction: The Dip in Amazon Stock Is a Buying Opportunity and the Stock Will End 2026 Higher