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StocksMedium•25 February 2026•

1 min read

Amazon Valuation Hits Lowest Level Since 2010 Despite Robust AWS Growth

Jeff Bezos in a suit over a map of the US with logistics routes, Amazon delivery vans, boxes, a drone, and a warehouse.

Key Facts

1Amazon announced a massive $200 billion capex plan, which led to a share price decline.

2AWS cloud unit posted 24% growth, its highest growth rate since 2022.

Amazon (AMZN) shares faced downward pressure following the announcement of a massive $200 billion capital expenditure plan, sparking investor concerns over future spending levels. Despite the market reaction, the company's valuation relative to its operating cash flow has reached its cheapest level since 2010. The AWS cloud division posted a robust 24% growth rate, marking its strongest performance since 2022 and highlighting continued dominance in the sector. Furthermore, Amazon's proprietary chip business saw triple-digit growth, while advertising revenues expanded by more than 20%. Analysts suggest that the underlying strength in high-margin segments may eventually overshadow the short-term anxieties surrounding the scale of the capex plan. This disconnect between record-low valuation multiples and strong fundamental growth presents a compelling narrative for long-term investors.