Amazon: Why I Am Investing For The First Time In 5 Years

Amazon: Why I Am Investing For The First Time In 5 Years
Oct. 21, 2025 1:03 PM ETAmazon.com, Inc. (AMZN) StockAMZN
Dilantha De Silva
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Summary
After five years of lagging the S&P 500, I am buying Amazon for the first time. I will detail why the risk-reward profile has fundamentally changed.
Amazon’s free cash flow just collapsed by 66% to $18.4 billion, which has spooked the market.
The FCF drop is driven by a massive, deliberate surge in AI CapEx. Amazon is building a full-stack AI business—from custom chips to developer tools—that the market is ignoring.
Wall Street is penalizing AMZN for its short-term margin compression while ignoring that its multi-billion-dollar GenAI business is already supply-constrained. I’ll explain this opportunity in more detail in this analysis.
I like investing in companies that I am also a customer of. It all depends on the valuation of such companies, of course, but if all else is equal, I will always choose a company in which I am a customer rather than investing
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Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and holds qualifications from the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AMZN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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