Amazon AWS Growth Accelerates to 39% Amid Rising Debt and Negative Free Cash Flow
Amazon (AMZN) reported strong third-quarter results highlighted by a 39% surge in AWS sales, marking its fastest growth rate in nearly five years. The cloud division has become a primary profit driver, accounting for approximately 63% of the company's total operating profit. Despite record operating margins and net sales reaching $201.9 billion, Amazon's shares faced downward pressure in after-hours trading due to concerns over liquidity. The company is aggressively investing in AI infrastructure, leading to a significant swing in free cash flow from an inflow of $14.8 billion last year to an outflow of $42.4 billion over the past 12 months. To fund this expansion, Amazon's long-term debt has climbed to approximately $173 billion, with quarterly interest expenses more than tripling to $1.7 billion.
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Topics: AWS capital expenditure cloud computing free cash flow operating margin
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Part of the story Amazon Reports Increased Capital Expenditures and Free Cash Flow Loss Amid AWS Growth (8 articles)