Amazon spent $77.3 billion on property and equipment in the third quarter, more than double the $35.1 billion a year earlier. AWS grew 39% year over year, its best pace in almost five years, but companywide sales rose only 12% to $201.9 billion and EPS of $1.89 fell from $1.95 a year earlier, both below Wall Street's targets. Free cash flow over the past 12 months was a loss of $42.4 billion, compared with a $14.8 billion gain a year earlier, while total long-term debt rose from $65.6 billion at the end of 2025 to $173.1 billion. Amazon still expects about $220 billion in capital expenditures in 2026. The author sees the main risk in cash flow and borrowing, and is skeptical about the long-term payoff of AI investments and about demand from AI labs such as Anthropic and OpenAI if their growth slows.
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▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 10/29/2026 | 243.79 |
| Change that session | -4.25% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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