Amazon Plans to Spend More on AI. Here’s Why the Stock is a Once-in-a-Decade Buy Hiding in Plain Sight.

Amazon (AMZN) missed Q3 earnings estimates and now plans to push AI spending beyond its $220 billion annual capital expenditure forecast, a combination that has the stock down 14% from its August highs.

The cash burn is the pressure point. Trailing-12-month free cash flow sits at negative $42 billion, and the added AI outlay widens the gap between investment and near-term returns. CEO Andy Jassy is not blinking. He expressed confidence in attractive financial returns on the spending and predicted AWS could grow into a trillion-dollar revenue business within 5 to 10 years.

At roughly 30x forward earnings, AMZN now carries a valuation that bulls argue prices in the cash-flow strain. The Motley Fool piece frames the pullback as a long-term entry point, though that is the publication's thesis, not a market consensus. Our interpretation: the market is weighing a quantified near-term cost (negative $42 billion in free cash flow, spending above $220 billion) against an unproven long-dated payoff (AWS at $1 trillion in revenue).