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Amazon Stock Performance and Future Plans
As of December 2, 2025, Amazon’s stock (NASDAQ: AMZN) has gained 6.8% in 2025, significantly underperforming the S&P 500’s 16.1% and Nasdaq-100’s 21.6% returns. The company’s market capitalization increased from $2.32 trillion in 2024 to $2.50 trillion. Despite the stock’s lackluster performance, Amazon is planning to increase its capital expenses to over $125 billion in 2026.
Financial Metrics
Key financial metrics include a decrease in the trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio from 39.7 to 33.1, while the Price-to-Sales (P/S) ratio remained steady at 3.7. However, the Price-to-Free-Cash-Flow (P/FCF) ratio surged from 71.5 to 239.6, indicating a cash flow challenge as the company invests heavily in Amazon Web Services (AWS) to bolster its AI infrastructure.
AWS Growth and Capital Investment
In Q3 2025, Amazon’s overall sales rose by 11.9% year-over-year, led by an 18.2% increase in AWS sales. Amazon has spent $120 billion on capital expenses over the past four quarters, up from $69.8 billion in the previous year, primarily to enhance AI capabilities. This trend is expected to continue in 2026 and beyond.
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