Amazon Shares Decline Following Q3 Earnings Miss and High Capital Expenditure Forecast
Amazon (AMZN) shares fell 4.25% to close at $243.79 following a third-quarter earnings report that missed Wall Street expectations for both revenue and earnings per share. While the company reported revenue of $201.9 billion and diluted EPS of $1.89, analysts had anticipated higher figures of $202.2 billion and $1.97 respectively. Despite the miss, Amazon's AWS division showed significant strength, with sales growth accelerating to 39% year-over-year to reach $46 billion. This growth is driven by the artificial intelligence boom and new agreements with companies like Meta and Salesforce. However, investor concern remains centered on the company's massive $220 billion capital expenditure plan for 2026 and its fourth-quarter revenue guidance.
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Topics: AWS growth cloud computing earnings miss e-commerce revenue guidance