Amazon is scheduled to report third-quarter earnings after the market closes on Oct. 29, and investors will watch revenue to see whether AI spending is paying off. AWS made up 60% of operating income in the latest quarter, with growth above 36%, the fastest in 18 quarters, while its AI business and custom chips business each reached an annual revenue run rate above $25 billion. Amazon raised its 2026 cash capex forecast by $20 billion to $220 billion, and some investors worry about how long it will take to monetize that spending. The stock has risen only in the single digits in 2026 and trades at 29x forward earnings, down from about 45x. The author considers the valuation reasonable and says short-term swings matter little to a long-term investor's gains.
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AMZNearningscloud computingAI investment
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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