Investors react to Amazon’s projected $200 billion capital expenditures, pressuring shares amid broader market volatility in Q1 2026.
Amazon.com Inc. (AMZN) faces investor scrutiny after projecting $200 billion in capital expenditures, contributing to a 9.0% decline in the Baron Durable Advantage Fund for Q1 2026. The fund underperformed the S&P 500, which fell 4.3% during the same period, due to sector allocation and stock selection challenges amid geopolitical tensions and rising oil prices.
AMZN shares closed at $270.13 on May 13, 2026, posting an 8.18% one-month return and a 31.66% gain over the past 52 weeks. The company’s aggressive capex plans contrast with its recent stock performance, raising concerns about near-term profitability.
The Baron Durable Advantage Fund aims for 100 to 200 basis points of annualized alpha, net of fees, while focusing on durable competitive advantages. Amazon remains a top holding, despite its recent underperformance relative to broader market benchmarks.