Amazon reported earnings below estimates and a deeper-than-expected negative free cash flow, while saying it plans to spend “meaningfully more” on AI next year; the stock fell afterward and was down 14% from its August high. AWS revenue grew 39% to $46 billion, and the company kept its capital spending forecast for the year at $220 billion. Trailing 12-month free cash flow was negative $42 billion due to property and equipment purchases. CEO Andy Jassy said AWS, now at a $184 billion annual run rate, could become a trillion-dollar revenue business within five to 10 years; the author argues the worries about AI spending may be overdone and that Amazon is reasonably priced at 30x forward earnings.
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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