Amazon reported its highest operating profit ever, yet its shares fell due to negative free cash flow and a shift from net cash to net debt. AWS is expected to generate more operating income than Amazon's current total by 2028, driven by strong contract-backed growth and high margins. However, rising capital expenditures, increasing debt, and ongoing negative free cash flow through at least 2028 pose short-term risks, limiting share buybacks and valuation based on free cash flow. The stock is rated a Buy at 23 times 2027 earnings, with potential reassessment if capital expenditures exceed 1.4 times operating cash flow or if AWS growth falls below 40%.
Amazon shares rose 2.62% to USD 257.25 on Pluang, showing resilience despite concerns over free cash flow and debt. The stock trades with a market cap of $2.66 trillion as of Nov 04, 2026 17:11 WIB.
Anthropic, the AI company behind the Claude model, is preparing for its initial public offering, marking a significant moment for Wall Street and major tech firms. Big tech players like Alphabet, Amazon, and Microsoft have committed tens of billions ...
Major hyperscalers like Amazon, Alphabet, and Meta are driving U.S. GDP growth through massive AI infrastructure investments, with capex budgets expected to rise over 90% by 2026. However, this surge in spending has led to growing financial stress, i...
Bill Ackman, CEO of Pershing Square, expressed concern that the stock market is broken due to excessive speculative trading and high leverage, causing wild price swings. Despite this, he sees opportunities to buy quality companies like Microsoft, Ama...
Bill Ackman, through Pershing Square, argues that Big Tech's capital spending on AI data centers, which rose from $140 billion in 2023 to $740 billion in 2026, is a strong growth investment despite pressuring free cash flow. The spending surge is mai...
Alphabet is experiencing a significant cash flow challenge due to accelerating capital expenditures (CapEx), which raises concerns about its ability to fund future AI-driven growth. Meanwhile, hyperscale cloud providers are spending aggressively, boo...
