How Rich Habits’s view on $AMZN changed

Channel profile →This channel has 2 credited speakers: Andy Jassy, Wall Street favorites.com / 'We both'2 entries

2026-08-07

“SpaceX's 1st Earnings Report, Big Tech Spending $725B & LinkedIn AI Slop”Andy Jassy

Amazon is aggressively investing in AI infrastructure (capex raised to $220B), with leadership projecting massive long-term AWS revenue growth (potentially $1T) despite current negative free cash flow.

Across the five biggest AI spenders, including Amazon, Microsoft, Alphabet, Meta, and Oracle, 20026 capex, guidance now totals more than $725 billion.

And Amazon is leading the pack at $220 billion. It's a number that their CEO Andy Jasse raised from their original 200 billion guidance that was issued during their Q2 earnings call last week. Andy Jasse blamed higher memory costs.

Watch the source00:57

2026-07-31Bullish

“Situational Awareness' Collapse, Big Tech Earnings & The Fed”

AMZN is undervalued; approval of paid robo-taxi rides creates a high-margin recurring revenue stream that supports a long-term bull thesis.

You go look at Microsoft and Meta and Amazon. They're importing hundreds of billions of dollars of semiconductor equipment and telecom equipment and things of that nature.

We both think that Nvidia is cheap, Amazon is cheap.

So if you think about it, between Meta, Alphabet, Microsoft, and Amazon, we're looking at combined AI related capital expenditures approaching 500 billion in 2026 alone. Meta at 130 to 145 billion, Alphabet at 195 to 205 billion, and Microsoft and Amazon have not yet updated their guidance this week.

Watch the source07:27