Amazon Investor Update
Amazon (NASDAQ: AMZN) shares have struggled recently, rising only 5.2% in 2025 and currently trading down 10% year-to-date in 2026. This performance ranks it as the second-worst among its peers in the “Magnificent Seven,” only ahead of Microsoft, which is down 18%. Notably, Amazon’s stock is now 18.4% below its all-time high.
In its fourth-quarter earnings report for 2025, Amazon announced a plan to spend $200 billion on capital expenditures in 2026, focusing on AI infrastructure and robotics. While its operating cash flow rose by 20% to $139.5 billion, capital expenditures also grew sharply from $77.7 billion in 2024 to $128.3 billion in 2025, resulting in a significant drop in free cash flow to $11.2 billion from $38.2 billion the previous year. Amazon ended 2025 with $57.3 billion in cash and marketable securities, suggesting it can sustain its aggressive spending strategy despite current market pressures.
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