New Amazon Price Target as Investors Digest Big CapEx Update

Amazon's announcement of a massive increase in capital expenditures for 2026 sent mixed signals through the investor community. While the spending signals confidence in long-term growth, particularly in AI infrastructure, it also raised near-term profitability concerns.

We're adjusting our price target to reflect the updated spending plans and their expected impact on free cash flow over the next several quarters. The key question is whether AWS can maintain its growth acceleration to justify the investment.