Amazon's capital spending plans spur debate, worry

There’s quite a tug-of-war underway over Amazon’s capital spending plans. Amazon reported a solid fourth quarter, but also added that it will continue to invest in fulfillment centers and infrastructure to build up Amazon Web Services.

There's quite a tug-of-war underway over Amazon's capital spending plans. Amazon reported a solid fourth quarter, but also added that it will continue to invest in fulfillment centers and infrastructure to build up Amazon Web Services.

Enter the worrywarts. Amazon is a bit of a conundrum for Wall Street. When the company is harvesting its investments, investors love it. But when the company's outlook disappoints because it is spending on infrastructure some analysts freak. It's a familiar pattern with tech companies:

When Verizon said it would do something crazy like bring fiber-optic lines to homes for its FiOS network, there were a few quarters of disbelief. Why would Verizon do that? Today, analyst yap all the time about Verizon's future proof network. Of course, they also want to see better returns out of FiOS.

Read more of "Amazon's capital spending plans spur debate, worry" at ZDNet.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.
See All