Overview
- Raising the industry capacity debate, Wells Fargo kept an Overweight on Amazon and inched its price target to $304 from $305 while projecting hyperscaler power capacity to double to 98GW by 2027, supported by heavy capital spending.
- Amazon reported $716.9 billion in trailing annual sales, topping Walmart’s $713.2 billion, after Q4 revenue reached $213.4 billion and AWS’s Bedrock hit a multibillion-dollar annualized run rate with customer spend up about 60% quarter over quarter.
- Management outlined roughly $200 billion in capital expenditures largely for AWS and AI infrastructure, signaling a major buildout to capture AI-driven cloud demand.
- Moody’s affirmed Amazon’s A1 rating but reset the outlook to stable from positive, citing concerns that the stepped-up investment could compress free cash flow.
- Despite broad sell-side support and a consensus Strong Buy rating, Amazon’s stock is about 20% below its 52-week high and down roughly 9% over three months, even as commentators like Jim Cramer argue the business is performing better than perceived.