The Capex Binge: Amazon is expected to increase capex exceeding USD 150 billion. After Google was punished for its USD 175 B+ forecast, investors are concerned that Amazon is overspending in Capex.
CEO Andy Jassy needs to prove that the massive billions being spent on AI infrastructure are actually hitting the bottom line now, not in 2028.
Amazon must deliver in 3 areas:
AWS needs to show growth of 21% or higher. Anything less, the AI laggard label returns with a vengeance.
The Margin Magic: Analysts are looking for EPS of USD 1.97. If the Bullwhip effect has squeezed margins too thin, not even a Prime Day record will help Amazon.
Trainium Chips: Investors want proof that Trainium chips are in demand.
It is going to be a bumpy ride tonight.
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- JulianAlerander·02-05 16:45TOPThat capex binge is scary, mate. AWS needs to smash 21% or it's all over. [看跌]1Report