$AMZN is continuing to spend massive amounts of money on PP&E. In the short term, it lowers ROIC and earnings. Long term, it becomes a serious barrier to entry, especially because both their main businesses (cloud and e-commerce) are dominated by scale.
More specifically, below is where this investment is going. On the e-commerce side, no competitor can match this investment giving Amazon a huge competitive advantage in distribution. Competitors have to try and build an advantage elsewhere.
On the cloud side,
$MSFT is able to compete. The cloud industry is so big that there should be room for both of them. Long term, I agree with Amazon's strategy.