Amazon Earnings, CapEx Concerns, Commodity AI

Here's something that caught my attention — Amazon is ramping up its capital expenditures big time, and honestly, it’s making me more nervous than Google's recent moves. But here’s the thing — Ben Thompson points out that this isn’t just reckless spending; it’s a strategic bet on their future infrastructure. Amazon’s investing heavily in data centers, logistics, and AI, aiming to dominate the next wave of tech. As Thompson explains, this massive CapEx could pay off if it secures their lead in cloud and e-commerce, but it also comes with serious risks if those investments don’t deliver quickly. Now, what’s interesting is that Amazon’s focus seems to be on commoditized AI — cheap, scalable tools that anyone can use. That’s a different game, and it raises questions about whether Amazon can sustain its margins. So, get ready — this kind of spending might reshape how Amazon competes, but it’s a gamble that needs to pay off soon. Keep an eye on their next earnings; it’ll tell us a lot about what’s really happening behind the scenes.