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Andy Jassy says Amazon investors will be rewarded by all its AI spending

CNBC·Alexa LoMonaco·28 days ago
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Andy Jassy said Amazon's massive spending on artificial intelligence isn't something investors should fear — it's exactly why they'll be rewarded over time. "We believe that AI is the biggest technology transformation in our lifetimes," the CEO said on " Mad Money ." "It's going to reinvent every single customer experience we know and altogether new ones we never imagined." In February, Amazon announced plans to invest $200 billion this year in capital expenditures, largely tied to AI infrastructure. The disclosure alongside fourth-quarter earnings sent shares tumbling. It took roughly two months for the stock to erase all of its post-earnings declines in early April. It has kept climbing higher since then, setting a new record close Monday. The crux of the debate surrounding the stock: Will Amazon be able to generate meaningful returns from all this spending? Skeptics also note that Amazon is projected to have negative free cash flow in 2026, according to FactSet.…

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