Amazon's blowout $200 billion AI spending plan stuns Wall Street
Businessinsider reported that Amazon said it plans $200 billion in capital expenditures this year, more than $50 billion above Wall Street expectations, and that the announcement sent the company's stock down more than 10% in extended trading. The capex forecast, combined with a profit outlook that missed expectations, prompted questions about returns on investment.
"The strong long-term return on investing capital — I think that's the debate in the market today," Evercore ISI analyst Mark Mahaney said, and JPMorgan's Doug Anmuth asked whether the company had "financial guardrails" for the spending plan. CEO Andy Jassy said new AI capacity is being monetized as quickly as it is deployed, calling it "a very unusual opportunity," and argued AWS' forecasting experience helps limit wasted capacity.