Amazon Prime delivery box on a front porch, highlighting Amazon’s e-commerce business amid a stock selloff narrative. Key Points Amazon shares are down more than 12% this year and over 20% from November’s all-time high, drifting back toward levels last seen nearly a year ago. The stock’s RSI has sunk into the low 20s, marking one of its most oversold readings in almost four years. Analyst support remains overwhelmingly bullish, with price targets implying close to 60% upside from current levels. Inter ...

Company Overview - Amazon is experiencing its worst 9-day losing streak since 2006, with a market cap loss exceeding $400 billion [1] - The current market sentiment is anxious, reflecting a disconnect between perceived risks and actual fundamentals [3] Investment and Market Sentiment - There is a prevailing "AI fear trade" and "capex fear trade" affecting investor sentiment towards tech companies [4] - The total capital expenditure (capex) among major tech firms like Microsoft, Meta, Amazon, and Alphabet is approximately $650 billion [6] AWS and AI Monetization - Confidence in AWS's ability to monetize AI investments is uncertain, with the market awaiting tangible positive returns [5][6] - The performance of Nvidia is critical, as any negative report could impact the entire AI sector sentiment [8] Software as a Service (SaaS) Outlook - Traditional legacy SaaS providers may face pressure, but there is a belief that not all software will be cannibalized by AI [14][16] - Enterprises are likely to rely on established SaaS providers for risk management and vetting of AI capabilities, rather than building their own tools [17]

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Amazon, Inc. (AMZN) stock is deeply depressed after last week's tumble. It means both at-the-money (ATM) and out-of-the-money (OTM)put options now have high yields. That provides a great potential buy-in point for value investors, while also getting paid to wait. AMZN closed at $198.79 on Friday, Feb. 13, 2026. This is down 10.7% from $222.69 on Feb. 5, just before its after-market Q4 earnings release. More News from Barchart AMZN stock - last 12 months - Barchart - Feb. 13, 2026 But, its one-year low ...

Core Insights - The market has entered 2026 with instability, as the S&P 500 is breakeven for the year and the Magnificent 7 stocks have an average return of -7.3% [1] - Concerns are rising among investors regarding margin compression due to significant capital expenditures in AI by tech giants [2] Small-Cap Opportunity - Capital is shifting towards smaller companies that support AI development rather than the major tech leaders, with Franklin Templeton suggesting that suppliers and adopters may present better opportunities [3] - Small-cap teams are focusing on firms producing semiconductor components, power infrastructure, and engineering services related to data-center expansion, which are benefiting from increased spending but still have modest valuations compared to larger tech companies [4] AI-Resilient Group - Despite the selloff in large-cap software, JPMorgan believes that not all incumbents will be negatively impacted by AI, indicating that the recent market reaction has been overly broad and has created opportunities in "AI-resilient" companies [5] - The bank's strategist notes that the current market positioning is overly bearish, suggesting a potential for a rebound in these resilient names [5]

Microsoft, Amazon and others are planting flags in a new cottage industry as publishers look for additional revenue. ...

Core Viewpoint - Cloudflare is addressing an internal issue that affects its services for various applications and websites [1] Company Summary - Cloudflare is a technology company that provides services for a wide range of applications and websites [1]

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Core Viewpoint - Amazon's stock has seen a significant decline following its fourth-quarter earnings report, trading approximately 23% below its all-time highs, with a price-to-earnings ratio of 25.8, nearing its lowest valuation in recent history [1]. Financial Performance - Amazon's revenue exceeded expectations in the fourth quarter, with notable growth in the Amazon Web Services (AWS) segment. However, the company's projected capital spending of $200 billion for 2026 raised concerns among investors, especially given that its operating cash flow for 2025 was $139.5 billion, reflecting a 17% increase from the previous year [2]. - There is a possibility that Amazon may report negative free cash flow in 2026, prompting conservative investors to withdraw [2]. Management Insights - AWS CEO Matt Garman reassured investors that the significant capital expenditure should not be a cause for concern, suggesting that they should be optimistic about the spending [3]. - Garman anticipates a capacity constraint for AWS for the next few years, indicating that demand will outstrip supply, which could lead to increased sales for Amazon [4]. Strategic Investment - If Garman's predictions hold true, the $200 billion investment could be beneficial for Amazon, and further investment may be warranted [5]. - Historical context shows that Amazon's previous investments in its e-commerce infrastructure, which initially reduced profitability, ultimately established a strong competitive advantage, with the e-commerce division reporting $35 billion in operating income last year, a 23% year-over-year increase [6]. - The AWS segment has also outperformed, generating $129 billion in revenue last year, an 18% increase, and $45 billion in operating income. If Garman's forecast is accurate, Amazon's investment in AI computing power could allow it to maintain pricing power in the market [7].

Core Insights - Wall Street anticipates a significant increase in spending by major hyperscalers, with projections indicating over $700 billion in budgets for 2026 [1] Group 1: Spending Plans of Hyperscalers - The five largest hyperscalers—Amazon, Alphabet, Microsoft, Meta Platforms, and Oracle—are facing increasing backlogs of compute demand for their cloud services [2] - The projected capital expenditure budgets for 2026 are as follows: Amazon at $200 billion, Alphabet at $180 billion, Microsoft at $151 billion, Meta Platforms at $125 billion, and Oracle at $58.8 billion [5] - Year-over-year growth in spending for these companies is substantial, with Alphabet showing a 97% increase, Amazon at 56%, Oracle at 66%, Meta Platforms at 73%, and Microsoft at 28% [5] Group 2: Focus on AI Data Centers - A significant portion of the capital expenditure is directed towards building and outfitting new AI data centers, with Amazon also investing in its logistics networks [6] - Microsoft CFO indicated that approximately two-thirds of their capital expenditure is allocated to short-lived assets, primarily GPUs and CPUs, suggesting a similar trend among other hyperscalers [8]