GoKawiilAmazon's Q3 results miss Wall Street forecasts as cash burn widens on AI spending
Amazon reported third-quarter results that fell short of Wall Street expectations, citing a shift in Prime Day timing as a drag on sales, even as its AWS cloud unit grew 39.3% to $46 billion, its fastest pace in nearly five years. The company also gave a cautious outlook for the holiday-quarter sales forecast, and shares fell 7% in after-hours trading following the report.
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CEO Andy Jassy reaffirmed plans to spend $220 billion this year, mostly on AI data centers, and predicted AWS could become a trillion-dollar business within five to ten years, signaling the company's long-term bet on AI infrastructure. However, a $42.4 billion free cash flow loss over the trailing 12 months suggests investors are growing wary of how quickly that spending will translate into profit, which could explain the stock's sharp after-hours decline.
- AWS revenue grew 39.3% to $46 billion, its fastest growth in nearly five years.
- Amazon plans to spend $220 billion in capital this year, mostly on AI infrastructure.
- The company posted a $42.4 billion free cash flow loss over the trailing 12 months amid heavy AI investment.
Source: fastcompany.com, 2026-10-30
Published there as: “Amazon posts 3rd quarter results that fall short of Wall Street’s expectations”
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