Amazon’s stock is down following the announcement of its massive spending plans. But according to AWS CEO Matt Garman, that worry is misplaced.
Following Amazon‘s (AMZN 0.39%) fourth-quarter earnings report, the stock experienced a severe sell-off. Amazon stock now trades roughly 23% below its all-time highs at just 25.8 times this year’s earnings estimates, which is close to its lowest valuation in the modern era on a price-to-earnings basis.
While revenue beat expectations in the fourth quarter, including a nice acceleration in the Amazon Web Services business, the company’s massive $200 billion 2026 capital spending forecast sent investors running. After all, Amazon made just $139.5 billion in operating cash flow in 2025, up 17% from the prior year.
So, barring a massive tilt higher, it’s likely Amazon may even post negative free cash flow in 2026. No wonder many conservative investors fled the scene.
However, in a recent interview, AWS CEO Matt Garman explained why investors…
https://www.fool.com/investing/2026/02/16/aws-chief-matt-garman-just-delivered-wonderful-new/
