So Amazon just wrapped up Q4 and honestly, the numbers tell an interesting story if you look past the immediate market reaction. Revenue hit $213.38 billion, up nearly 14% year-over-year, which is solid across the board. AWS and advertising both crushed it with over 20% growth each, and that's really where the AI tailwinds are showing up. North America retail was up 10% and international jumped 17%, so you're seeing strength pretty much everywhere.

Here's where it gets interesting though. Full-year sales cracked $700 billion for the first time, with annual adjusted EPS up 30% to $7.17. That's the kind of growth that usually gets investors excited. But then Amazon announced they're spending $200 billion on capex in 2026, up 53% from last year. That spooked the market enough to send the stock down 10% on the open.

The thing people are missing is that this massive capex spend is directly tied to AI infrastructure buildout. CEO Andy Jassy made a point about understanding demand signals in the cloud business and converting that into real returns on invested capital. Amazon's ROIC is sitting at 16%, which is respectable but still lagging some of the other mega-cap tech players. That said, it's trending up, and for a company at this scale, that matters.

After the selloff, AMZN is trading at its cheapest forward P/E in a decade at 28X. Historically, when Amazon gets punished over near-term spending concerns while the core business is actually accelerating, that's often been the exact moment to get interested. The Q4 start of earnings season showed fundamentals holding strong across all major segments, and the market's fear about capex might be creating one of those rare dip-buying opportunities. With the Rank sitting at Buy based on positive EPS revisions for the next couple of years, worth keeping an eye on how this plays out.