Prediction: Amazon CEO Andy Jassy May Raise Full-Year Capex Guidance on July 30
Amazon is set to report second-quarter results for fiscal year 2026 after the market closes on July 30, with a conference call expected to follow. The Motley Fool predicts that CEO Andy Jassy will raise Amazon's full-year capital expenditure (capex) guidance during this event. This prediction comes amid signs from other hyperscalers like Alphabet, which recently increased its capex forecast for the year due to rising demand in cloud infrastructure and AI development. Investors have been wary of increasing capex as it strains balance sheets and leads to negative free cash flow projections over the next few years. However, Jassy has previously reassured investors that Amazon's long-term investments are backed by strong customer commitments and expected returns on invested capital (ROIC). AWS-related spending includes land, power, servers, chips, and networking gear—assets monetized six to 24 months after deployment. The market appears prepared for a capex increase at this point. Recent stock declines following Alphabet's guidance hike suggest investors are bracing for similar news from Amazon.
Tickers: $AMZN
Topics: AI Infrastructure Capex Guidance Earnings