Automation has long been central to the growth strategy of Amazon.com (AMZN), powering everything from its massive fulfillment centers to its push for faster delivery. But the e-commerce giant is now making headlines for cutting jobs inside its robotics division, an unexpected move in a unit widely viewed as critical to Amazon’s long-term logistics growth. Recently, the company eliminated more than 100 roles from its robotics division as part of a broader restructuring and cost-cutting effort that has already trimmed tens of thousands of corporate jobs since 2022.

Despite the cuts, the company says it will continue investing heavily in strategic areas such as artificial intelligence and data centers, with plans to spend about $200 billion largely on Amazon Web Services (AWS) to meet strong demand for artificial intelligence (AI) workloads. While Amazon recently scrapped development of its “Blue Jay” warehouse robot, automation remains a key priority, with more than a million robots already operating across its fulfillment network.

With the tech giant still investing heavily in AI, logistics innovation, and its powerful cloud platform AWS, what should be your next move?

About Amazon Stock

Amazon.com is a global technology and e-commerce behemoth, headquartered in Seattle, Washington. Today, the company operates across a dazzling range of businesses, cloud services via AWS, digital streaming, subscription services, advertising, physical retail, consumer electronics, and more. Its diversified growth model has placed it among the world’s most valuable public companies, with a market cap of $2.3 trillion, and it has a secure position in the Magnificent Seven group.

However, the stock has declined 8.91% year-to-date (YTD), reflecting broader volatility in technology names and investor caution around elevated spending on AI infrastructure. Investors reacted strongly when Amazon announced plans to spend around $200 billion on AI, cloud, robotics, and data center infrastructure, raising concerns about near-term free-cash‐flow erosion and profitability headwinds.

Despite the recent pullback, AMZN still remains up about 5.12% over the past 52 weeks, supported by strong investor confidence in the company’s e-commerce leadership and the rapid expansion of its cloud and AI businesses.

Additionally, in the most recent trading session following reports that Amazon was cutting roles in its robotics division, the market reaction was positive. Rather than viewing the move as a slowdown in automation, investors interpreted it as part of the company’s broader efficiency drive and capital reallocation toward AI and data center expansion. As a result, AMZN shares climbed 3.88% in that session (Mar. 4), marking their strongest daily gain since November.

AMZN currently trades at a premium compared to the sector median, but below its own historical average at 27.88 times forward earnings.

Q4 Earnings Missed Expectations

Amazon reported its fourth-quarter and full-year 2025 results on Feb. 5. In Q4 2025, net sales climbed to $213.4 billion, representing a 14% year-over-year (YOY) increase. AWS segment generated $35.6 billion in revenue, up 24% YOY, marking its fastest growth rate in over a year and underscoring continued strength in cloud demand, particularly around AI and enterprise workloads.

Advertising revenue also contributed to upside, rising about 22% YOY to $21.3 billion. Its earnings per share came in at $1.95, compared to the prior-year quarter value of $1.86, but slightly missed Street forecasts, and the stock saw a sharp sell-off as investors digested the company’s outlook and spending plans. The stock slumped 4.4% on Feb. 5 and 5.6% on Feb. 6.

For the full year 2025, Amazon delivered double-digit net sales growth of around 12%, with total net sales reaching $716.9 billion. However, free cash flow contracted sharply, falling to roughly $11.2 billion, down significantly from prior periods, largely due to aggressive capital expenditures and strategic investments.

Management’s guidance for 2026 signaled both continuity and escalation of these trends. Amazon forecast capital expenditures of roughly $200 billion for the year a substantial increase over prior estimates, aimed at expanding AI data centers, custom silicon production, robotics, and emerging businesses such as low-Earth-orbit satellite infrastructure.

While this aggressive spending underpins the company’s long-term strategic thrust into AI and cloud leadership, it contributed to downward pressure on near-term profitability and cash-flow metrics, which analysts and the market viewed with caution.

For the first quarter of 2026, Amazon projected revenue in the range of approximately $173.5 billion to $178.5 billion, implying YOY growth between 11% and 15%.

Analysts remain upbeat, projecting EPS of $7.78 for fiscal 2026, up 8.5% YOY, and anticipating a further 19.7% annual increase to $9.31 in fiscal 2027.

What Do Analysts Expect for Amazon Stock?

Amazon.com received renewed bullish support from BofA Securities recently, which reiterated a “Buy” rating and a $275 price target on the stock, citing rapid growth at Anthropic as a potential catalyst for stronger sentiment toward Amazon Web Services.

Also, last month, Citizens reiterated its “Market Outperform” rating and $315 price target on Amazon.com, following its Q4 2025 results.

Overall, AMZN has a consensus “Strong Buy” rating. Of the 57 analysts covering the stock, 49 advise a “Strong Buy,” five suggest a “Moderate Buy,” and three analysts recommend a “Hold” rating.

The average analyst price target for AMZN is $284.75, indicating a potential upside of 35.9%. The Street-high target price of $360 suggests that the stock could rally as much as 71.8%.

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