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Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/29/2026 | 244.23 |
| Change that session | -4.07% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AWS will be a $1T business, Jassy says. But first, it will spend big.
Jassy reiterated that AWS can become a trillion-dollar revenue business within the next five to 10 years. Amazon still expects 2026 cash capex of about $220 billion, mostly for AWS, and plans to spend meaningfully more in 2027. AWS revenue rose 39% year over year, its sixth straight quarter of steady growth, and the company expects AWS to grow north of 40% in both 2027 and 2028, with an annualized run-rate of $184 billion. Jassy called the AI boom a 'once in a lifetime opportunity' and said Amazon can fund the plan, but investors remained concerned and shares fell about 6% in after-hours trading.
- Amazon (AMZN) Q3 2026 Earnings Call Transcript
Amazon reported third-quarter revenue of $201.9 billion, up 12% year over year, and operating income rose 61% to $28.1 billion, for an operating margin of 13.9%. AWS net sales reached $46.0 billion, growing 39.3%, with a backlog of $578 billion. The company spent $75.9 billion on capital expenditures in the quarter and guided full-year capex to $220 billion, with meaningful increases expected in 2027. Net income was $20.7 billion, or $1.89 per diluted share, down from $21.2 billion a year earlier, which had included a $9.5 billion pre-tax gain from its Anthropic investment. Management also cited higher fuel and line-haul transportation costs that raised fulfillment expenses during the quarter.
- Stock Market Today, Oct. 29: Amazon Falls on Q3 Earnings Report and Capex Concerns
Amazon (AMZN) closed at $243.79 on Oct. 29, down 4.25%, on trading volume of 70.8 million shares, about 81% above its three-month average of 39.2 million. After the bell, the stock fell further as third-quarter revenue of $201.9 billion, up 12% year over year, and diluted EPS of $1.89 came in below Wall Street's expectations of $202.2 billion and $1.97. AWS sales grew 39% to $46 billion in the quarter, up from 37% in Q2, and management projects AWS growth will exceed 40% in 2027 and 2028. Amazon forecast fourth-quarter revenue of $240 billion to $247 billion, versus analysts' average estimate of $244.51 billion, and $220 billion in capex for 2026.
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Amazon (AMZN) shares fell about 4% ahead of its quarterly results as investors worry that hyperscalers' soaring capital expenditures are eating into cash flow. Gene Munster of Deepwater Asset Management said Google's weak results were a warning sign for Amazon investors, citing growing long-term risk from personalized bots to the business. Alphabet posted third-quarter revenue of $127.58 billion, up 25%, while net income available to common stockholders fell to $26.17 billion ($2.12 per share) from $34.98 billion ($2.87 per share) a year earlier. For Amazon, StreetAccount estimates project AWS revenue growth of 38%, up slightly from 37% last quarter, and CEO Andy Jassy said cloud capacity is largely sold out heading into next year.
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On an Andreessen Horowitz podcast on Oct. 23, 2026, Amazon CEO Andy Jassy said AWS capacity for 2027 is largely sold out and a good chunk of 2028 is sold as well, though Amazon has not disclosed the contracted capacity or backlog figures behind the phrase. AWS revenue rose 37% to $42.2 billion in Q2 2026, and Amazon has disclosed more than $225 billion in future Trainium revenue commitments. However, Amazon plans to spend about $220 billion on capex in 2026, trailing 12-month free cash flow was a $7.6 billion outflow, and much of the booked capacity goes to AI labs whose long commitments could be renegotiated if their funding tightens. Amazon closed at $248.00 on Oct. 23, with a market cap of about $2.68 trillion, and its Q3 report is due Oct. 29, 2026.
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