AWS Growth Fuels Amazon's Capex Buying Opportunity

Amazon's recent stock dip has created a buying opportunity for investors, according to Alex Sirois. With AWS revenue surging 37% in Q2 FY26, its fastest pace in 18 quarters, and a $496 billion contracted backlog, every capex-driven dip becomes a chance to own more of the company.

Unlike Microsoft and Alphabet, Amazon's cloud dominance is backed by a $70 billion ad business and $150 billion grocery operation that pure-play peers can't replicate. Jassy argues that data centers monetize for 30-plus years with servers breaking even in three, making the planned $200 billion capex a long-term asset.

Sirois points out that AWS is re-accelerating on a large base, segment revenue reached $42.23 billion in Q2 FY26, up 37% year over year at a 39.4% operating margin. Custom silicon drives growth, and Amazon's AI business and chips business each cleared a $25 billion annualized run rate at triple-digit growth.

The balance sheet supports the spend with debt-to-equity at 0.37, interest coverage at 35.2 times, cash at $78.21 billion, and trailing operating cash flow at $139.51 billion.