Google Wants To Indulge In Workforce Training and Global Policy Discussions On AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2025
0mins
Should l Buy AMZN?
Source: Benzinga
Google's AI Education Initiative: Google is investing $120 million to develop educational programs aimed at training the workforce on AI, addressing job insecurity caused by technological advancements. The company is also engaging with global governments to promote the use of AI tools.
Job Cuts in Tech Sector: Major tech companies, including Microsoft, Google, Meta, and Amazon, have implemented significant layoffs recently, with thousands of employees affected as they adapt to changing market conditions while simultaneously committing substantial investments towards AI infrastructure.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 199.600
Low
175.00
Averages
280.01
High
325.00
Current: 199.600
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Decline: Amazon's stock has dropped 14% year-to-date and has faced a nine-day losing streak, the longest since July 2006, although Wall Street believes the stock is undervalued with a median target price of $285, indicating a potential 43% upside.
- Strong Financial Results: Despite narrowly missing earnings expectations, Amazon reported a 14% year-over-year revenue increase to $213 billion in Q4, driven by robust growth in advertising and cloud computing, highlighting the company's competitive position in rapidly growing markets.
- Capital Expenditure Plans: Amazon plans to increase capital expenditures to $200 billion by 2026, a 56% rise from $128 billion in 2025, raising investor concerns about the company's financial health, particularly regarding its significant investments in AI infrastructure.
- Accelerating Cloud Growth: Amazon Web Services (AWS) saw a 24% revenue increase in Q4, the fastest growth in 13 quarters, with CEO Andy Jassy noting that the custom chip business has surpassed a $10 billion annual revenue run rate, indicating that AI investments are beginning to yield returns.
See More
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- AWS Growth Acceleration: Amazon's cloud computing platform, AWS, grew at a pace of 24% in Q4, marking the fastest growth in 13 quarters, highlighting its critical role in AI model development and enhancing Amazon's competitive position in the market.
- Valuation Pullback Justified: Despite significant revenue and earnings growth, Amazon's stock has declined by approximately 7% since 2025, with its PE ratio dropping to 26.5 times, reflecting a market reassessment of its valuation, potentially providing a reasonable buying opportunity for investors.
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures in 2026, primarily for data center construction, which may impact cash flows; however, if AI computing demand continues to grow, this investment will support future business expansion.
- Investor Confidence Recovery: Although the Motley Fool analyst team did not include Amazon in their current best stock picks, analysts believe that Amazon is poised for a stock rebound in 2026, indicating a recovery in market confidence regarding its future performance.
See More
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- Market Instability: After a prolonged period dominated by mega-cap tech, the market has entered 2026 on shaky ground, with the S&P 500 breakeven for the year and the Magnificent 7 stocks averaging a -7.3% return, indicating investor concerns about future profitability.
- Surging Capital Expenditures: As tech giants pour tens of billions into AI models, chips, and data centers, investors are increasingly worried about potential margin compression, even as companies like Amazon tout operational efficiencies and cost reductions.
- Small-Cap Appeal: Skepticism towards large tech firms is prompting capital to rotate into smaller companies, particularly those positioned as enablers of AI development, with Franklin Templeton suggesting that opportunities may lie with suppliers and adopters rather than the mega-cap leaders.
- AI-Resilient Stocks: Despite challenges faced by large-cap software firms, JPMorgan argues that the recent selloff has been too indiscriminate, creating opportunities in what they term
See More
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- Intensifying Market Competition: Amazon's market cap stands at $2.13 trillion, but its slowing growth rate exposes it to fierce competition from TSMC and Broadcom, which have market caps of $1.57 trillion and $1.54 trillion respectively, potentially surpassing Amazon in the next three years.
- Earnings Expectations Comparison: Analysts project TSMC's earnings per share (EPS) to reach $14.31 in 2026 and $18 in 2027, while Amazon's EPS is expected to slightly decline from $7.78 last year to $7.74 this year, indicating significant investment in AI-related expenditures.
- Surge in Capital Expenditures: Amazon anticipates capital expenditures of $200 billion this year, a substantial increase from last year, which, while not directly impacting EPS, will have long-term implications for growth, particularly in the AI sector.
- Optimistic Industry Outlook: The growth of TSMC and Broadcom is primarily driven by a surge in AI spending, which is expected to propel their market caps beyond Amazon's in the coming years, making them attractive stocks for investors and intensifying market competition.
See More
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- Tech Stock Rotation: The rotation out of technology stocks in 2026 has garnered attention, and despite market volatility, investors are presented with opportunities to acquire high-quality stocks at attractive valuations, potentially capitalizing on future gains.
- Long-Term Investment Confidence: Analysts express optimism about eight stocks that have experienced fluctuations, believing they still possess the ability to generate profits for shareholders in the long run, reflecting a strong market confidence.
- Amazon's Investment Potential: Among the stocks discussed, Amazon (NASDAQ:AMZN) is highlighted as a favorite investment choice, as its long-term growth prospects continue to attract investor interest despite facing challenges.
- Video Content Promotion: The video, published on January 10, 2026, aims to engage viewers to subscribe to the channel and learn more about investment opportunities, while also providing a special offer link to enhance viewer participation.
See More
AI Trade Loses Momentum, Nasdaq Faces Bear Market Risk
- AI Trade Stalling: According to David Woo, the Nasdaq 100 index (QQQ) has shown no significant movement since last October, with its 100-day rolling return rapidly approaching zero, indicating a potential leadership erosion and the risk of a deeper market correction.
- Earnings Momentum Weakening: During the fourth-quarter earnings season, the combined EBIT four-quarter moving average of the Magnificent Seven fell to its lowest level since 2023, and despite a rebound at Apple, the overall fading earnings growth momentum raises concerns about profit-taking risks for investors.
- Capex Correlation Breakdown: Woo noted that for the first time since the launch of ChatGPT, the strong correlation between AI stocks and hyperscaler capital expenditures has turned negative, suggesting a loss of market trust in capex as a signal for higher returns, which could lead to over-investment risks.
- Market Psychology Shift: As AI-related capex grows much faster than AI-related revenue, Woo warns that this unsustainable gap may indicate a shift in investment cycles outpacing revenue cycles, posing significant risks for the market, especially with an uncertain outlook heading into 2026.
See More
