Amazon Trims Price Target Following Quarterly Revenue and Earnings Miss
Amazon (AMZN) reported a rare double miss this quarter as revenue reached $201.9 billion and GAAP earnings per share fell to $1.89, both trailing analyst estimates. The results were weighed down by slower-than-expected growth in core retail sales and advertising revenue, alongside concerns regarding negative free cash flow driven by massive AI infrastructure investments. Despite the miss, Amazon Web Services (AWS) showed significant strength, with revenue growing 39.3% year-over-year to $45.98 billion. The cloud unit's operating margin improved to 38.65%, and the service Bedrock emerged as a major growth driver. While analysts have lowered their price target from $300 to $280 due to shifting investor expectations, long-term optimism remains high regarding AWS's ability to scale in the generative AI era.
Topics: after-hours trading AWS growth earnings miss retail sales slowdown revenue decline