Amazon.com (AMZN.US) will significantly increase its capital expenditure again in 2026, completing the layout of the three major capital expenditure giants, JPMorgan released a research report saying. The US$200 billion capital expenditure is impactful, exceeding Alphabet (GOOGL.US)'s US$175-185 billion and Meta (META.US)'s US$115-135 billion.
Amazon.com previously burned cash in 2021 and 2022 due to COVID-19-related logistics construction but achieved a significant rebound in 2023 and 2024 through network footprint rationalization and regionalization.
Therefore, the broker believed that Amazon.com is willing to endure short-term profit pressure, as it did years ago, to drive major long-term growth opportunities. JPMorgan kept rating at Overweight on Amazon.com, but trimmed its target price from US$305 to US$265, based on a PE ratio of 29x for the 2027 EPS of US$9.04.
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AASTOCKS Financial News
Website: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| AMZN (C) |
10004 |
280 (-) |
0.022 |
12.5 X |
| AMZN (P) |
10700 |
180 (-) |
0.042 |
10.9 X |
| ALPBE (C) |
10080 |
360 (-) |
0.335 |
6.2 X |
| ALPBE (P) |
10012 |
230 (-) |
0.072 |
6.3 X |
| META (C) |
10003 |
900 (-) |
0.037 |
14.4 X |
| META (P) |
10757 |
700 (-) |
1.010 |
6.1 X |
