Needham analyst Laura Martin keeps Buy rating on Amazon with $265 price target despite concerns.
Amazon plans nearly $200 billion capital expenditure for fiscal 2026, higher than peers who fund from free cash flow.
Martin estimates 70% of FY26 spend is AI‑related and urges a 20% ROI hurdle, cutting non‑AI projects.
CEO Andy Jassy defends the spend, citing AI‑driven customer experiences and investments across retail, logistics, satellites, pharmacy and more.