Amazon's capex spend

Capital expenditure by the US tech titans is a hot talking point, especially if you own Nvidia shares. Take a look at this image from App Economy Insights which looks at previous annual capex spend, and compares that to projections for 2025. Clearly, spending is not slowing down.

Amazon is planning to crest $100 billion in capex this year, which is huge. They are also the only company out of the big 4 that has not returned any money to their shareholders in the financial year 2024, in the form of share buybacks or dividends. They are sticking to the Bezos mantra that it is always "day 1" and they will continue to invest for growth. If you want dividends buy another stock.

During the latest earnings call, CEO Andy Jassy said that capex was necessary to increase its server capacity to meet current demand. That's a good sign. We are happy long-term holders of all these companies in the graphic. Fortunately, their existing businesses are making more than enough money to pay for all this spending.