Amazon's capital spending plans spur debate, worry

Summary: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.

Topics: IT Employment, Apps, Cloud, Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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