Tiger Brokers

Amazon's CapEx Needs to Show Returns -- Market Talk

Dow Jones
Feb 06

7:55 ET -- Amazon's projection of $200 billion in 2026 capital spending will need to show a clear return on investment, Morgan Stanley analysts write in a note, cutting the stock's price target to $300. Growth in Amazon Web Services likely justifies the commitment, they write, but the company also said it was accelerating spending for the satellite internet business Amazon Leo, and "investors right now are not forgiving about large investments without clear signal on ROIC." The spend places more scrutiny on Leo as investors wait for quantifiable contracts, or until Amazon begins beating profit numbers by margin without Leo. Still, they write, "we believe AMZN is still the most under-appreciated GenAI winner in our group at its current multiple." (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 06, 2026 07:56 ET (12:56 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10