Amazon Reports Increased Capital Expenditures and Free Cash Flow Loss Amid AWS Growth
Amazon (AMZN) reported a significant surge in capital expenditures, spending $77.3 billion on property and equipment in the third quarter—more than double the previous year's spend. This aggressive investment strategy, aimed at fueling AI and cloud infrastructure, contributed to a trailing 12-month free cash flow loss of $42.4 billion, a sharp reversal from a $14.8 billion gain a year prior. Despite the heavy spending, Amazon Web Services (AWS) showed strong performance, with revenue reaching $46.0 billion and growing 39% year-over-year. However, total company sales of $201.9 billion and earnings per share of $1.89 both fell short of Wall Street expectations. The company's long-term debt also saw a substantial increase, rising to $173.1 billion as it continues to fund massive AI-related infrastructure projects.
Coverage
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