Amazon's comments around logistics should calm investor fears about the risk that the company is set to start spending to build out its own full transportation network to deliver all of its own inventory and meaningfully compete against FedEx, UPS and the USPS. Instead, AMZN noted it needs more of its own logistics to "supplement" its delivery partners during peak capacity and it's "not meant to replace them."
Amazon confirmed they plan to open 5 new AWS regions "in the near future" but noted the new regions are not expected to be the main drivers of forward capex spend. Rather, AMZN noted most of their capex and capital leases in AWS are to service existing regions and existing customers' demand growth. Further, while AMZN said there will be future capex associated with the planned AWS regions, "some of that is not always in the year when we open the region" as they "spent a good bit on those new regions already in 2015."
