Amazon and Uber: Investment Opportunities Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy AMZN?
Source: Fool
- Amazon's Market Leadership: Amazon leads the e-commerce market in North America, Western Europe, and the Middle East, ranking third in global ad tech, with an expected 18% annual earnings growth over the next three years, making its current 35x P/E ratio appear reasonable and highlighting its competitive edge in the rapidly growing AI infrastructure demand.
- Cloud Computing Advantage: As the largest cloud service provider globally, AWS is developing custom AI accelerators to meet the increasing demand for AI infrastructure, and has established a primary cloud partnership with AI startup Anthropic, valued at $350 billion, further solidifying its market position.
- Uber's Diversified Services: Uber operates the largest ride-sharing platform globally and integrates food delivery services, effectively attracting new customers through cross-promotion, with expected 26% annual earnings growth over the next three years, making its current 10x P/E ratio appear cheap and indicating significant potential in a rapidly growing market.
- Autonomous Driving Partnership Outlook: Uber collaborates with 20 autonomous vehicle companies, aiming to deploy 100,000 robotaxis in the coming years, with projections indicating it will account for 22% of U.S. robotaxi trips by 2032, positioning it strongly in the fast-evolving robotaxi market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMZN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 199.600
Low
250.00
Averages
294.69
High
340.00
Current: 199.600
Low
250.00
Averages
294.69
High
340.00
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.
Amazon Stock Faces Nine-Day Decline Amid AI Spending Concerns
- 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
Amazon's AWS Shows Strong Performance, Stock Recovery Potential
- 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
White House Considers Cost Burden on Data Centers
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Amazon's Investment Plans Spark Market Concerns
- Surging Capital Expenditures: Amazon plans to increase capital expenditures from $132 billion last year to $200 billion by 2026, which could lead to negative free cash flow but reflects the company's confidence in future revenue growth.
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% revenue growth over the past year, reaching $35.6 billion, with expectations for continued acceleration driven by surging demand from AI startups.
- Record Operating Earnings: Despite declining free cash flow due to infrastructure investments, Amazon's operating earnings hit a record high of $85 billion over the last 12 months, showcasing strong performance in both retail and cloud businesses.
- Long-Term Growth Potential: If Amazon can achieve a 15% annual revenue growth over the next three years, its revenue could exceed $1 trillion by 2030, with a 15% profit margin translating to $150 billion in net earnings, nearly double current levels.
See More
Amazon's Future Investments Raise Concerns
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures by 2026, a significant increase from last year's $132 billion, which could lead to negative free cash flow in 2026, yet reflects the company's confidence in future revenue growth.
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% year-over-year revenue growth to $35.6 billion, with expectations for continued demand, particularly driven by spending needs from artificial intelligence startups.
- Record Operating Earnings: Despite declining free cash flow due to infrastructure investments, Amazon's operating earnings reached a historic high of $85 billion over the past 12 months, indicating expanding margins in both its retail operations and AWS.
- Long-Term Growth Potential: If Amazon can achieve a 15% annual revenue growth over the next three years, it is projected to exceed $1 trillion in revenue by 2030, with a 15% profit margin translating to $150 billion in net earnings, nearly double current levels.
See More
Amazon Stock Faces Nine-Day Decline Amid AI Spending Concerns
- 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
Amazon's AWS Shows Strong Performance, Stock Recovery Potential
- 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
White House Considers Cost Burden on Data Centers
- Cost Internalization for Data Centers: White House trade advisor Peter Navarro stated that data center builders must absorb costs related to electricity and water usage, highlighting the government's concern over economic pressures that could impact companies like Meta.
- Rising Electricity Prices: With electricity prices spiking 6.9% year-over-year in 2025, public anxiety about the economy is increasing, as Navarro attempts to blame former President Biden, indicating the current administration's challenges in addressing inflation.
- Policy Response Measures: The Trump administration has signed a pact with several states urging major tech companies to finance $15 billion for new power plants to alleviate the strain data centers place on the grid, demonstrating proactive government intervention in energy policy.
- Election Outlook Impact: As the November 2026 midterms approach, polls show Democrats leading by 5.2 points, reflecting voter concerns over economic issues that could affect Trump's and the Republican Party's electoral prospects.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
Amazon's Investment Plans Spark Market Concerns
- Surging Capital Expenditures: Amazon plans to increase capital expenditures from $132 billion last year to $200 billion by 2026, which could lead to negative free cash flow but reflects the company's confidence in future revenue growth.
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% revenue growth over the past year, reaching $35.6 billion, with expectations for continued acceleration driven by surging demand from AI startups.
- Record Operating Earnings: Despite declining free cash flow due to infrastructure investments, Amazon's operating earnings hit a record high of $85 billion over the last 12 months, showcasing strong performance in both retail and cloud businesses.
- Long-Term Growth Potential: If Amazon can achieve a 15% annual revenue growth over the next three years, its revenue could exceed $1 trillion by 2030, with a 15% profit margin translating to $150 billion in net earnings, nearly double current levels.
See More
Amazon's Future Investments Raise Concerns
- Capital Expenditure Plans: Amazon plans to invest $200 billion in capital expenditures by 2026, a significant increase from last year's $132 billion, which could lead to negative free cash flow in 2026, yet reflects the company's confidence in future revenue growth.
- AWS Revenue Growth: Amazon Web Services (AWS) achieved a 24% year-over-year revenue growth to $35.6 billion, with expectations for continued demand, particularly driven by spending needs from artificial intelligence startups.
- Record Operating Earnings: Despite declining free cash flow due to infrastructure investments, Amazon's operating earnings reached a historic high of $85 billion over the past 12 months, indicating expanding margins in both its retail operations and AWS.
- Long-Term Growth Potential: If Amazon can achieve a 15% annual revenue growth over the next three years, it is projected to exceed $1 trillion in revenue by 2030, with a 15% profit margin translating to $150 billion in net earnings, nearly double current levels.
See More
