BREAKINGVIEWS-Amazon becomes an AI loser twice over

+4.61% Pre

-0.21% Pre

-0.23% Pre

Microsoft Corporation

MSFT

411.22

418.56

+4.61%

+1.78% Pre

Amazon.com, Inc.

AMZN

248.50

248.07

-0.21%

-0.17% Pre

Walmart Inc.

WMT

124.76

124.70

-0.23%

-0.05% Pre

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

NEW YORK, Feb 5 (Reuters Breakingviews) - The $2.4 trln tech titan’s commerce business is outpacing rival Walmart as it spends massively to bolster a more popular cloud unit than Microsoft’s. Its valuation badly lags both. Amid angst over winner-take-all machine-learning doom, the company is an unwanted fish-fowl hybrid.

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CONTEXT NEWS

Amazon.com on February 5 said that it generated $213 billion in revenue in the fourth quarter of 2025, an increase of 14% from the same period a year ago. The company earned $21.2 billion, or $1.95 a share, compared to $20 billion, or $1.86 per share last year.

Amazon plans to spend $200 billion on capital expenditure in 2026, compared to $132 billion last year.

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