Amazon’s Q4 Performance and AI Investments
Amazon’s shares (NASDAQ: AMZN) have experienced a significant downturn, dropping double digits since reaching a peak in early November 2025, following the company’s Q4 2025 results announced on February 5, 2026. Despite this, Amazon’s revenue from Amazon Web Services (AWS) saw a 24% year-over-year increase in Q4, highlighting the strong demand for its AI and cloud services. Amazon projects capital expenditures of around $200 billion this year, primarily focused on AI infrastructure development.
Strong Backlog and Market Position
As of the end of 2025, AWS reported a backlog of $244 billion, a 40% increase year-over-year and a 22% increase quarter-over-quarter. Analysts remain optimistic about Amazon, with 63 out of 67 surveyed by S&P Global rating the stock as a “buy” or “strong buy.” The consensus price target suggests a potential upside of approximately 33% over the next 12 months. Amazon also ranks as the lowest-priced retailer in the U.S. for the ninth consecutive year, enhancing its competitive positioning amid economic uncertainty.
