Forget the Capex Fears: Why Alphabet and Amazon Are Must-Buys
Amazon and Alphabet are both seeing strong returns on their AI infrastructure investments.
Overview
Cloud providers have started to peel back the onion on their cloud computing economics, and it's now easy to see why these companies are pouring money into AI infrastructure. Demand for their services continues to outstrip capacity, while they are getting very strong returns on their investments with quick payback periods.
While Wall Street has feared this massive capital expenditure (capex), it should, in fact, be celebrating it. Let's look at why Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) both look like great buys here.
Image source: The Motley Fool.
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.