Amazon.com Inc. (AMZN) saw a 5.6% stock drop post its Q4 earnings due to increasing CapEx for AI aspirations. Analysts are concerned about a potential AI bubble and its impact on the stock. Despite the drop, Amazon reported a 14% YOY increase in net sales to $213.39 billion for Q4. AWS sales grew 24% to $35.58 billion, with operating income at $12.47 billion. The company expects Q1 net sales of $173.50 billion to $178.50 billion. Analysts maintain a “Strong Buy” rating, with a consensus price target of $297.51, indicating a 42.4% upside.

Overall, concerns about an AI bubble bursting are offset by Amazon’s growing retail business and positive analyst ratings.

Read more at Barchart: Should You Buy the Post-Earnings Dip in Amazon Stock?