Amazon (NASDAQ: AMZN) stock rose only 5.2% in 2025, underperforming its peers. Year-to-date in 2026, Amazon is down 10%, trailing behind Microsoft. The company announced plans to spend $200 billion on capital expenditures in 2026, focusing on AI infrastructure, custom chips, and robotics. Despite the decline, Amazon’s aggressive investments could pay off in the long run.

The current market favors safe, dividend-paying companies, impacting growth stocks like Amazon. Amazon’s spending on AI and lack of dividends may deter some investors. However, the company’s strong balance sheet and potential efficiency gains from automation could justify the high spending. Amazon’s valuation remains reasonable, offering an opportunity for savvy investors.

Before buying Amazon stock, consider other top stock picks from the Motley Fool Stock Advisor team. While Amazon may not be among their top choices, their past recommendations have yielded significant returns. Join an investing community for individual investors to access their latest top 10 stock picks and potentially profit from market-beating returns.

Read more at Nasdaq: This “Magnificent Seven” Stock Is Down 22%. Buy It Before It Sets a New All-Time High.