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News  ›  The Motley Fool

The Biggest Risk for Amazon Stock Investors Right Now

The Motley Fool Logo The Motley Fool By Parkev Tatevosian, Cfa
The Biggest Risk for Amazon Stock Investors Right Now

Amazon's management is aggressively increasing capital expenditures, which could potentially risk investor returns by not delivering sufficient returns on invested capital.

Insights
CORZ   positive

Maintains independence after rejecting a $9 billion acquisition, has 200 megawatts of AI hosting under contract, plans to deliver 900 megawatts of AI hosting capacity, and maintains flexibility to negotiate with multiple hyperscalers


AMZN   negative

Management's aggressive spending strategy may not generate proportional returns, creating potential financial risk for investors