Amazon Bets Big on AI With $200B Capex: Buy, Sell or Hold the Stock?

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Amazon.com, Inc. delivered mixed fourth-quarter 2025 results with revenue beating expectations but EPS narrowly missing. The company announced a substantial $200 billion capital expenditure plan for 2026, primarily driven by AI investments, which has raised investor concerns about free cash flow and near-term returns. Despite strong AWS growth and strategic AI initiatives, the stock’s premium valuation and competitive landscape suggest a “Hold” rating for now, with patience advised for new investors.

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