From Nasdaq: 2024-05-03 05:50:00

Amazon’s stock has surged nearly 20% this year and over 70% in the last 12 months. The company plans to increase capital expenditures to support AWS growth, with first-quarter capex at $14 billion. Amazon’s historical success with capex increases and strong free cash flow make it a smart buy.

Investors reacted positively to Amazon’s increased capex plans, unlike Meta Platforms. Amazon’s focus on generative AI with AWS investments aligns with its history of reaping long-term benefits. By offering diverse AI models on AWS, Amazon simplifies generative AI deployment for customers, enhancing productivity and innovation.

Amazon’s SageMaker boosts productivity in generative AI model building with examples showing significant efficiency gains. The launch of Amazon Q, an AI-powered tool, highlights the company’s strength in developing cutting-edge AI technologies. Amazon’s investment in AWS for generative AI sets it up for further growth and innovation, making it an even more attractive stock.

Consider the Motley Fool’s recommendations before investing in Amazon. They identify 10 top stocks for investors to buy, excluding Amazon. Their Stock Advisor service offers expert guidance for building a successful portfolio, with returns surpassing the S&P 500 since 2002. Despite not being on their list, Amazon remains a promising investment opportunity for the future.



Read more at Nasdaq: Amazon’s About to Spend a Lot More. Here’s Why That Makes the Stock an Even Better Buy.