Amazon’s Capital Expenditure Concerns
Amazon (NASDAQ: AMZN) plans to allocate $200 billion in capital expenditures for 2023, the highest among major companies. This spending primarily targets building out its AI infrastructure and data centers, despite concerns from investors about its potential impact on free cash flow.
As of the end of Q1, Amazon Web Services (AWS) had a backlog totaling $364 billion, indicating substantial demand for its cloud services. However, investors have reacted negatively to the capital expenditure estimates, contributing to a nearly 12% decline in Amazon’s stock in June, marking a reversal from its all-time high in May.
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