Amazon Stock Stagnant Despite AI Expansion Plans

Amazon's stock has struggled to gain traction this year despite its strengths in e-commerce, cloud computing, and artificial intelligence.

The company's capital expenditures are on track to reach $220 billion this year, up from $132 billion in 2025, with a significant portion of that being spent on AI expansion.

While Amazon has borrowed tens of billions of dollars to fund its growth, it still maintains a strong financial position with $123 billion in liquidity and the ability to generate cash flow.

The company's e-commerce segments continue to drive growth, with yearly net sales increasing 20% in the second quarter of 2026, up from 13% one year ago.