Amazon Stock Trails S&P 500 as Wall Street Debates AI Spending Strategy
Amazon's stock performance has become a focal point for Wall Street analysts, with AMZN gaining just 22% over five years compared to the S&P 500's 87% surge. The disparity has sparked debate about whether the market is undervaluing the e-commerce giant. Analysts remain largely bullish, with 40 Buy ratings and a $279.88 consensus price target.
Concerns center on Amazon's planned $200 billion capital expenditures for 2026, which would exceed its $140 billion operating cash flow. CEO Andy Jassy defended the aggressive investment strategy, particularly in AI and AWS infrastructure, as essential for long-term dominance rather than short-term revenue chasing.