Amazon Plans to Spend More on AI. Here’s Why the Stock is a Once-in-a-Decade Buy Hiding in Plain Sight.
Key PointsAmazon is on track to spend $220 billion on the AI build-out this year.
Artificial intelligence (AI) is driving the stock market's performance with tech giants heavily investing in the sector. Amazon (AMZN -1.41%), a cloud player and owner of AWS, is one of these AI-focused companies. Amazon reported earnings below estimates and deeper negative free cash flow. The stock experienced a 14% drop, but this could be a once-in-a-decade buying opportunity.
Amazon's AI spending is expected to reach $184 billion annually, with potential for further growth. AWS could become a trillion-dollar revenue business in five to 10 years, making Amazon reasonably priced at 30x forward earnings estimates.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
