Amazon (NASDAQ: AMZN) trades at just above $255 as of the time of this writing. Despite its strengths in e-commerce, cloud computing, and now artificial intelligence, its stock has gained little traction this year.
This situation may leave investors wondering what’s wrong with Amazon stock. Has it just paused before resuming its upward move, or is it a stock investors should hold or avoid?
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Image source: The Motley Fool.
Before answering that question, investors should ponder both the potential and the costs of its AI expansion. Although the company is in a strong position to lead in AI, capturing that business has come at an enormous cost.
Amazon forecast $220 billion in capital expenditures (capex) for this year, up…
