Amazon reported higher-than-expected capital expenditure and its slowest e-commerce growth in three years, adding to concerns over Big Tech's massive AI spending. Citizens Equity Research analyst Andrew Boone said AI demand is healthy and capex continues to grow, while the market is trying to work out the long-term balance of AI supply and demand. He cited CEO Andy Jassy's remark that AWS could become a trillion-dollar business within 5 to 10 years, and noted AWS accelerated by two points with growth expected at 40% in 2027 and 2028. In his view, investors prioritize cash flow and legacy businesses before capex and AI growth. He also argued that Amazon's logistics strength will keep demand on its platform.
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AMZNAI investmentcloud computinge-commerce
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Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 10/29/2026 | 243.79 |
| Change that session | -4.25% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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