Why is Amazon (AMZN) trending today?
Amazon's stock dropped over 7% after reporting Q3 earnings and revenue below Wall Street forecasts. While AWS cloud revenue grew strongly, heavy AI investments contributed to negative cash flow and weaker retail performance, prompting investor concern.
What happened
- Earlier
Amazon reported Q3 earnings after hours, missing revenue and EPS estimates. Shares fell 7%+ in extended trading. [1]
What you need to know
Q3 revenue: $201.9B (vs expected $202.25B) [1][2]
AWS cloud sales jumped 39% YoY to $45.98B, beating forecasts [1]
Retail sales grew just 2% YoY, missing targets [1]
2026 capex forecast held at $220B, but 2027 spending expected to rise significantly [1]
How investors will react in coming sessions after the initial sell-off.
Background
Amazon faces pressure to prove AI investments will boost future revenue. [1]
Aggressive AI/cloud spending has driven negative free cash flow for two consecutive quarters. [1]
CEO Andy Jassy predicts AWS could become a $1T revenue business in 5-10 years. [1]
Questions people ask
Why did Amazon's stock fall?
Earnings per share ($1.89) and revenue ($201.9B) both missed analyst forecasts, with retail weakness and AI spending impacts cited. [1][2]
Is AWS performing well?
Yes, AWS revenue grew 39% YoY to $45.98B, beating expectations and showing strong cloud demand. [1]
What's driving the negative cash flow?
Massive AI infrastructure investments, with property/equipment purchases up substantially. [1]
Where this came from
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.