When UBS Bank speaks, you must listen

The market has always feared one word:
"Overbuilding" or excessive construction. The fear that giants are spending billions on data centers that no one will inhabit.

But UBS Bank's latest report on Amazon ($AMZN) completely changes the game.

The numbers that turned the tide:
Turning expenses into revenue:
Amazon plans to spend $200 billion on capital expenditures (CapEx),

which is a frightening figure at first glance.
But the positive shock lies in the growth forecasts for the cloud sector (AWS).

Accelerating growth:
The bank expects AWS growth to jump from 24% to 38% by 2026.

This acceleration means one thing:
Massive investments are already turning into tangible cash flows.

Revenue doubling:
If this momentum continues, cloud sector revenues and profits are expected to double in just two years.

Vision and analysis:
When you see a company spending $200 billion and it’s accompanied by such rapid growth,
the narrative of "over-spending" dies clinically.

What Amazon is doing is not "burning" money,
but transforming liquidity into vital infrastructure that is increasing in demand faster than competitors can build.

The interesting part is the valuation; Amazon’s stock is currently trading at a forward P/E ratio of 14x for 2027,
which UBS considers a "significant discount" compared to the expected earnings growth (EPS) of 41%.

There is a clear gap between the company's true value and the market’s cautious perceptions.

Summary:
Artificial intelligence and cloud services are not just a "trend" in technology,
but the new backbone of the global economy.

Amazon is not just participating in this future,
but is literally "buying" it through the largest spending budget in history.

Those who saw the $200 billion as a "burden"
may soon discover that it was the cheapest price paid for controlling the next decade.

Your opinion matters to me:
Do you think AWS’s growth will continue to justify these billions, or will competition from Microsoft and Google limit these ambitions?

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