My stock in focus today is
$Amazon.com(AMZN)$ , after its sharp pullback following earnings. The selloff was driven mainly by
sticker shock over capex, with Amazon guiding for a
>50% jump in AI-related spending, while Q1 profit guidance came in below expectations. Investors are clearly uneasy about the rising cost of the AI arms race.
Still, the core business remains healthy. AWS grew 24%, its fastest pace in over three years, and continues to generate over 60% of operating profit. Heavy investments in AI infrastructure and in-house chips are weighing on near-term margins, but they reinforce Amazon’s long-term cloud leadership.
This reaction highlights Wall Street’s shifting stance: AI spending must now deliver visible returns. In my view, the pullback looks more like a reset of expectations rather than a breakdown in Amazon’s long-term thesis.
@Tiger_comments @TigerStars @TigerClub @Daily_Discussion
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