Major Bank Ratings | JPMorgan: Lowers Amazon Target Price to $265, Maintains "Overweight" Rating

Glonghui, February 9th｜JPMorgan released a research report stating that Amazon's capital expenditure in 2026 will once again increase significantly, completing the layout of the three giants in capital expenditure. The $200 billions in capital expenditure is quite impactful, exceeding Google's $175 to $185 billions and Meta's $115 to $135 billions. The bank mentioned that Amazon last burned cash in 2021 and 2022 due to pandemic-related logistics construction, but achieved a significant rebound in 2023 and 2024 through rationalization and regionalization of its network layout. Therefore, the bank believes Amazon is willing, as it was years ago, to endure short-term profit pressure to drive major long-term growth opportunities. The bank maintains its "Overweight" rating on Amazon but lowers the target price from $305 to $265.