--- title: "Massive investments in AI raise market concerns, Amazon's stock price has a poor start this year, but Wall Street still sees it as an \"undervalued winner.\"" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/276284958.md" description: "Amazon's stock price has had a poor start this year, with a cumulative decline of 9.2%, affected by earnings that did not meet expectations and AI capital expenditure plans. Despite market concerns about the return on AI investments, some Wall Street analysts believe this presents a buying opportunity for investors optimistic about AI. Morgan Stanley analysts pointed out that Amazon Web Services (AWS) is an undervalued winner, with an expected price-to-earnings ratio of 25.8 times over the next 12 months, lower than the average of 48.1 times over the past five years" datetime: "2026-02-18T23:26:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276284958.md) - [en](https://longbridge.com/en/news/276284958.md) - [zh-HK](https://longbridge.com/zh-HK/news/276284958.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/276284958.md) | [English](https://longbridge.com/en/news/276284958.md) # Massive investments in AI raise market concerns, Amazon's stock price has a poor start this year, but Wall Street still sees it as an "undervalued winner." According to Zhitong Finance APP, Amazon (AMZN.US) had a poor start this year, but some Wall Street analysts believe that this pullback actually provides a potential buying opportunity for investors optimistic about the long-term returns of artificial intelligence (AI). Even though the stock price saw an initial rebound this week, Amazon has still fallen 9.2% over the past 12 months, significantly underperforming the Nasdaq Composite Index, which rose about 13% during the same period. Since the earnings report released on February 5, the stock price has dropped about 7.5% due to disappointing earnings and market concerns triggered by large-scale AI capital expenditure plans. Investors are generally worried that tech giants, including Amazon, are investing hundreds of billions of dollars to build AI infrastructure, but the related investment returns have not yet fully materialized. The company expects capital expenditures to rise to about $200 billion by 2026, a significant increase from $131.8 billion in 2025. Meanwhile, Amazon's earnings per share for the fourth quarter were $1.95, slightly below Wall Street expectations, which further exacerbated market caution. However, it is this anxiety over AI spending that has led to a significant decline in Amazon's valuation. Currently, the stock's expected price-to-earnings ratio for the next 12 months is about 25.8 times, significantly lower than its average of 48.1 times over the past five years. Morgan Stanley analyst and head of technology research Brian Nowak reminded clients in a report on Wednesday that Amazon itself has a strong business that can directly benefit from the expansion of capital expenditures, namely Amazon Web Services (AWS). Nowak stated that AWS is "an undervalued generative AI winner" and emphasized that demand for cloud computing services continues to be an important driver of the company's growth. Management disclosed during the earnings call on February 5 that the company's unfulfilled contract obligations (backlog) have reached $244 billion, a 40% year-on-year increase. He also pointed out that, like other cloud service providers, Amazon is currently still facing capacity constraints. Ongoing expansion of data centers to meet the growing demand will help further drive business growth, but this also means high capital investment. "For this reason, we remain optimistic about the accelerated expansion of AWS capital expenditures," Nowak wrote. He gave Amazon an "overweight" rating with a target price of $300, implying more than a 45% upside from current levels. Overall, Wall Street remains relatively optimistic about Amazon. According to FactSet statistics, among the 72 analysts covering the stock, 66 have given it a "buy" rating, while only 6 have suggested "hold." However, AI investments are changing the market's perception of the cash flow capabilities of tech giants. Amazon disclosed in February that its free cash flow for the past 12 months ending in the fourth quarter was $11.2 billion, significantly lower than $38.2 billion in the same period last year. LPL Financial's chief equity strategist Jeff Buchbinder noted in a report on February 12 that as AI capital expenditures become a long-term theme, investors will pay closer attention to companies' guidance on free cash flow prospects. However, he also added that the market consensus still points to "positive but volatile cash flow growth." Recent trends indicate that some investors may have begun to rebuild their confidence in this e-commerce and cloud computing giant. Amazon's stock price rose on Tuesday, ending a streak of nine consecutive trading days of decline, marking the longest losing streak since July 2006. On Wednesday, the stock continued to rise by about 1.8%, closing at $204.79. It is noteworthy that despite the rebound in stock price, a 13F filing disclosed on Tuesday evening showed that Berkshire Hathaway (BRK.A.US, BRK.B.US), led by Warren Buffett, has reduced its Amazon holdings by about 80% to 2.3 million shares, but this news did not prevent a short-term recovery in its stock price ### 相關股票 - [GraniteShares 2x Long AMZN Daily ETF (AMZZ.US)](https://longbridge.com/zh-HK/quote/AMZZ.US.md) - [Direxion Daily AMZN Bull 2X Shares (AMZU.US)](https://longbridge.com/zh-HK/quote/AMZU.US.md) - [Global X Cloud Computing ETF (CLOU.US)](https://longbridge.com/zh-HK/quote/CLOU.US.md) - [Amazon (AMZN.US)](https://longbridge.com/zh-HK/quote/AMZN.US.md) - [Roundhill AMZN WeeklyPay ETF (AMZW.US)](https://longbridge.com/zh-HK/quote/AMZW.US.md) ## 相關資訊與研究 - [Should You Chase the Amazon-Driven Rally in Globalstar Stock Today?](https://longbridge.com/zh-HK/news/281573463.md) - [Amazon's satellite business gets another win as it seeks to challenge Musk's Starlink](https://longbridge.com/zh-HK/news/281201680.md) - [Amazon.com, Inc. $AMZN Stake Increased by NorthCrest Asset Manangement LLC](https://longbridge.com/zh-HK/news/280758277.md) - [K-Buddhism: "AI Sage", Can an AI awaken to its Original Nature? | AMZN Stock News](https://longbridge.com/zh-HK/news/281059138.md) - [Amazon Just Lost a Key AI Chip Executive. 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