Amazon, Meta Stock Outlook Amid Heavy AI Spending Plans

Mixed stock market while Amazon and Meta face bearish pressure over massive AI investment costs.

  • US stock markets show mixed signals as traditional tech giants project strength while precious metals and cryptocurrencies decline.
  • Amazon and Meta stocks face bearish pressure after announcing massive AI infrastructure investments totaling hundreds of billions.
  • Wall Street analysts project potential 12-month price recoveries if the firms’ ambitious AI strategies prove successful.

Major US stock markets are currently balancing bullish tech strength with broader financial sector uncertainty. While Gold, silver, and cryptocurrencies bleed red, giants like Amazon and Meta are projecting robust future plans. Investors are now questioning what’s next for these assets and if they are worth the investment.

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However, Amazon stock recently turned bearish after its fourth-quarter earnings report. CEO Andy Jassy stated the firm expects to invest about “$200 billion in capital expenditures across Amazon in 2026” to fuel AI and other innovations, according to a CNBC report. Consequently, the announcement triggered a 10% stock drop as investors grew skeptical of the colossal spend.

Meanwhile, Meta stock is under similar investor scrutiny for its own aggressive AI pivot. The company plans to bolster spending on infrastructural support, ready to deploy nearly $135 billion. Jassy passionately believes “every customer experience we have today will be reinvented by AI,” as noted in a BBC article.

Analysts offer a potential rebound narrative for both stocks over the next year. Data from TipRanks suggests Amazon’s stock could surge to a high of $340. Its average 12-month price target represents a 33.59% increase from current levels. For Meta, analyst forecasts cited by TipRanks show a highest price target of $1,144. The average target implies a 28.22% gain, contingent on successful AI execution.

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