Amazon Stock: 1 Number Makes the AI Spending Look Far Less Risky

Artificial intelligence (AI) spending has been the most heated debate this year. Investors pulled out of AI stocks, worrying that the enormous AI spending was not yielding meaningful earnings growth. Amazon (AMZN) wasn’t spared either. However, one number in its recent Q2 print changed the story for the retail and cloud giant. Following its Q2 earnings release, AMZN stock has soared 21% over the past five days, touching a market cap of $3 trillion.

While the company revealed its plans of investing $220 billion in capital expenditures this year, it also laid out the plan for what this investment will generate. This one number in Amazon’s Q2 report shows why its AI spending may be far less risky than many investors assume.