The author follows Amazon (AMZN) ahead of its Q3 earnings on Oct. 29 and says the main reason to hold is AWS rather than the earnings beat. Amazon beat Q3 EPS estimates in 2023, 2024 and 2025, and the stock rose 6.83%, 6.19% and 9.58% on those earnings days. AWS growth accelerated from 20% in Q3 2025 to 37% in Q2 2026, when AWS delivered $42.23 billion in revenue at a 39.4% operating margin and a $496 billion backlog. Risks cited include trailing free cash flow of -$7.6 billion, about $200 billion of planned 2026 capex, and reported earnings that include a $53.4 billion Anthropic gain. The article also compares Amazon's P/E of 36 with Microsoft's 30.
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AMZNcloud computingearningsartificial intelligence
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Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/19/2026 | 262.45 |
| Change that session | +4.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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