AWS Growth Slows to 24% as Amazon Plans $200B Capex, Cuts Managers
Amazon's AWS revenue grew 24% YoY in Q4 2025 while Google Cloud expanded 48%, and the company plans $200B in capital expenditures for 2026 with a P/E near 28. Amazon deployed AI workflows to replace middle management and laid off thousands of managers to drive cost savings.
1. AWS Growth and Valuation
AWS revenue growth decelerated to 24% year-over-year in Q4 2025, compared with Google Cloud's 48% expansion, contributing to a roughly 13% year-to-date share price decline for Amazon. The stock trades at a P/E of around 28, above Alphabet's near-25 multiple.
2. 2026 Capital Expenditure Plans
Amazon has guided for approximately $200B in capital expenditures for fiscal 2026, focusing on data center expansion, logistics infrastructure, and AI hardware investments.
3. AI-Driven Management Cuts
Amazon has rolled out AI-based workflows to handle tasks previously managed by human supervisors, resulting in the layoff of thousands of middle managers as part of a broader cost-reduction and efficiency drive.