Amazon Stock

Amazon’s stock rebounded over 1% after an 18% drop, erasing over $450 billion in market value. This decline stemmed from concerns over Amazon’s $200 billion AI-driven capital expenditure plans. While CEO Andy Jassy defends the strategy for future returns, analysts urge the company to demonstrate tangible results from its significant AI investments. The market watches closely to see if Amazon can translate this spending into profitable growth.

BMO Capital Markets has upgraded Amazon Web Services (AWS) forecasts, predicting robust 2026 growth fueled by accelerating customer commitments and AI integration, like Anthropic’s Claude. This, alongside a strong Q3 performance and market anticipation, suggests a significant rebound for Amazon stock, with analysts reiterating an “outperform” rating and an increased price target.