Is Amazon's AWS Creating a Once-in-a-Decade Buying Opportunity for the Stock?
Of all the tech titan stocks that have been clobbered this year, Amazon (NASDAQ: AMZN) is arguably one of the more surprising losers. Shares of the e-commerce and cloud computing giant have fallen over 40% so far in 2022. That fall comes despite Amazon holding onto the retail gains it picked up during pandemic lockdowns, and the continual growth in its AWS cloud segment by a strong double-digit percentage.
Investors weren't pleased with the Q3 2022 report. Management indicated more slowing growth could lie ahead as a record run-up in the dollar (a result of the U.S. Federal Reserve's huge interest rate increases this year). But, despite this weakness, Amazon is putting massive amounts of cash to work to bolster its most important business. Is now a once-in-a-decade buying opportunity for this top tech stock?
Amazon CFO Brian Olsavsky said on the last earnings call that the company was going to wind up allocating about $60 billion on capital expenditures (or capex, spending on property, plant, and equipment) in 2022. This figure is roughly in-line with capex spend in 2021, even though Amazon's growth has slowed significantly. This level of capex also dwarfs the capex spend of fellow tech titans -- even Meta Platforms (NASDAQ: META) and its huge bill on data center equipment in support of its metaverse aspirations.
Source Fool.com
