History Says Amazon Stock's 2 Worst Years of the Past 15 Ended in Net Losses, and Both Rebounds Were Huge
The e-commerce and cloud giant is spending $220 billion this year. The last two times its bottom line went negative, the stock had its worst years of the past 15, then some of its best.
Overview
Amazon (NASDAQ:AMZN) is running the largest capital-spending program in its history. The company expects about $220 billion in capital expenditures this year, an estimate CEO Andy Jassy raised from $200 billion in July.
And the spending runs well past this year. On Aug. 26, Amazon Web Services (AWS) and Nvidia announced plans to put 2 million more Nvidia graphics processing units (GPUs) into AWS's infrastructure in 2027 and 2028, adding to plans to put more than 1 million GPUs in place starting in 2026, announced earlier this year.
Details
So what has spending on this scale historically meant for the stock? Amazon has been here before, and the record is specific. In the past 15 years, the stock's two worst years were also years its bottom line went negative in the middle of a heavy investment stretch, and both were followed by enormous rebounds.
Source
Originally published at www.fool.com.