Amazon Shares Hover Near $240 as $200B Capex Drains FCF

Amazon stock has underperformed in 2026, down 13% over the past month and lagging most Magnificent Seven peers, trading near $240 after the July 8-9 $25 billion bond issuance. The pullback stems from investor concerns over the company’s sharply higher $200 billion AI infrastructure budget, which has collapsed trailing free cash flow to just $1.2 billion and prompted forecasts of negative FCF for the year. Despite these pressures, AWS reaccelerated to 28% growth with a $364 billion backlog and Trainium commitments exceeding $225 billion, leaving the stock at a more reasonable 28-29x forward earnings and sparking debate over whether the valuation discount signals opportunity or further downside.