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JPM Trims Amazon.com (AMZN.US) TP to US$265 on Short-term Profit Pressure
2026-02-09 11:55:11
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
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