"The market just dislikes the substantial amount of money that keeps getting put into capex for these growth rates. "Google's eye-popping capex forecast of $175 billion to $185 billion for the year got a pass from investors on Wednesday as the company delivered stellar growth in its cloud revenue, as did Meta's plan to spend between $115 billion and $135 billion. "This hardly assuages investors' fears that Amazon and fellow Big Tech peers are dialing up the risk of an overspend on AI infrastructure. "Although a smaller unit for Amazon, contributing just 15% to 20% of overall sales, cloud platform Amazon Web Services generates over 60% of the company's operating profit. Sales jumped 22% in the fourth quarter to $21.3 billion and Jassy said the company has added AI options to Prime Video so that marketers can create ads with limited human interaction.

Source: Economic Times February 06, 2026 05:19 UTC