Now, some companies, you see, they’re like particularly plump pigeons – everyone flocks to them, throwing crumbs of money about. Others, well, they’re a bit like scruffy sparrows, overlooked and underestimated. Amazon, this enormous beast of a business, has been feeling a bit sparrow-like lately. It hasn’t exactly been soaring, has it? A bit of a wobble, a bit of a dip… and that, my friends, is precisely when a sensible investor starts to twitch their nose.
Most folks think of Amazon and see boxes and deliveries. But underneath all that cardboard, there’s something rather clever going on. Something to do with clouds… not the fluffy white kind, but the sort you store information on. And this cloud business, see, it’s absolutely vital for all this new-fangled ‘Artificial Intelligence’ everyone’s chattering about.
Amazon Plays a Huge Role in AI
Since 2025, Amazon’s share price has been doing a bit of a sulk, falling about 7%. But here’s the peculiar thing: the company itself hasn’t shrunk! In fact, it’s been growing, making more money, earning more shillings. It’s like a perfectly good cake being ignored in favor of a slightly squashed biscuit. The market, you see, has decided Amazon is no longer quite as ‘premium’ as it once was. A bit like deciding a perfectly good top hat is suddenly ‘last season’.
At 26.5 times future earnings, Amazon is now trading at a price that’s… well, reasonable. For a long time, investors were paying a ridiculous premium, as if Amazon was spun from gold. A bit excessive, if you ask me. Now, it’s more like paying a sensible price for a sturdy pair of boots. Not glamorous, perhaps, but reliable.
During the last three months of the year (they call it ‘Q4’, which sounds dreadfully official), Amazon had a rather splendid time. Sales went up 14%, which is a goodly amount. And driving this little surge was Amazon Web Services – that’s the cloud business I mentioned earlier. Without these clouds, this AI nonsense wouldn’t be possible. It’s like trying to build a castle without any bricks.
AWS grew at a whopping 24% – the fastest it has in ages! It’s as if someone suddenly flipped a switch and said, “Right, let’s build some AI!” This is a big deal, because it means companies are starting to use Amazon to build their clever machines. If this keeps up throughout 2026, I wouldn’t be surprised to see Amazon’s share price do a bit of a jig.
Now, there’s one little wrinkle. Amazon is planning to spend a colossal $200 billion on… well, on building more clouds! More data centers, more blinking lights, more whirring machines. It’s a rather frightening amount of money, and it will certainly dent their cash flow. But if everyone wants to build AI, they need somewhere to put it, don’t they? I’m willing to give them the benefit of the doubt. They probably know more about this than I do.
So, there you have it. Amazon, a slightly scruffy sparrow with a rather clever brain. I think it’s a good buy today, and I wouldn’t be surprised to see it bounce back throughout 2026. Just remember, even sparrows can take flight.
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2026-02-15 08:32