Citi: Amazon's 2026 Capex Forecast of $200B Exceeds Expectations; Maintains Buy Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy ?
Source: aastocks
4Q25 Results and 1Q26 Forecast: Amazon reported quarterly revenue of USD213.4 billion, exceeding expectations, with an operating profit of USD25 billion, aligning with previous guidance.
AWS Performance: Revenue from Amazon Web Services (AWS) grew by 24% year-over-year, surpassing forecasts, although the 2026 capital expenditure guidance of USD200 billion was higher than anticipated.
Citi's Target Price: Citi set a target price of USD320 for Amazon, based on a valuation of approximately 33 times the estimated 2027 GAAP EPS of USD9.7, maintaining a Buy rating.
PPI Update: The Producer Price Index (PPI) year-over-year for December in the United States remained unchanged at 3.0%, compared to a forecast of 2.7%.
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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.
