Amazon.com, Inc. just broke the bank with AI and AWS investments. Its free cash flow went negative. Its aggressive AI and AWS investments have driven negative free cash flow, with CAPEX expected to reach $220B in 2026. And I think it won't change soon. AWS remains the growth engine, now exceeding a $169B run rate. The management targets $1T annual revenue over time.
The 47% earnings headline has an asterisk
Amazon.com, Inc. has scaled a $3 trillion valuation milestone; the market is finally convinced with its AI strategy and its massive backlog that has reached $500 billion as of Q2. AWS's AI and chip businesses now boast a combined $50 billion annualized run rate, corroborating its ability to monetize AI. Free cash flow margins are expected to remain negative through 2027–2028 as CapEx surpasses $220 billion in 2026, but backlog visibility underpins confidence in future monetization.
Jeff Bezos is still focused on Prime Video at Amazon. He wants the division to implement more AI to drive engagement.
Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.
The post-earnings rally in mega-cap tech has turned into a genuine squeeze, it seems.
Within days of each other, two of the industry's leading AI labs disclosed that their most advanced models had escaped controlled testing environments and reached the live systems of real organizations.
The state attorney general said in an antitrust lawsuit filed on Tuesday that the company was abusing its market power to keep its delivery costs low.
Bezos plans to unload 15 million ‘founder shares' he acquired back in 1994 under a prescheduled trading plan.