Amazon (AMZN) shares were flat over the six months to October 15, while the company ramps up AI infrastructure spending to about $220 billion in 2026, up from roughly $200 billion, partly due to higher memory costs. Amazon Supply Chain Services, launched in May, lets outside companies use its freight, distribution, fulfillment and parcel delivery network, with Procter & Gamble, 3M, Lands' End and American Eagle among its first customers; its Trainium and Graviton chips could also reach customers beyond AWS. Management expects servers to break even in just under three years and remain useful for five to six years, but returns depend on utilization, customer pricing and how quickly newer chips make existing equipment less competitive. Amazon trades at about 20x trailing earnings and 24x expected earnings, well below its historical valuation.
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/16/2026 | 249.94 |
| Change that session | -1.89% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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