Amazon Shares Decline After Q3 Revenue and Earnings Miss Expectations
Amazon (AMZN) shares closed down 1.41% following a third-quarter earnings report that missed analyst expectations for both revenue ($201.9 billion) and earnings per share ($1.89). Despite the miss, Amazon reported steady growth with net sales increasing 12% year-over-year, driven largely by a robust 39% surge in Amazon Web Services (AWS) annual net sales. Investor concern centered on the company's aggressive capital expenditure plans, including a $220 billion capex goal for 2026 aimed at AI development. This spending, coupled with a trailing 12-month free cash flow outflow of $42.4 billion, triggered initial volatility. However, Amazon's significant liquidity position of approximately $114 billion helped stabilize the stock as it recovered much of its intraday losses.
Topics: AWS growth capital expenditure earnings miss revenue growth stock price decline