The author keeps adding to Amazon for two reasons: AWS is accelerating from a large base, with growth rising from 20% in Q3 2025 to 37% in Q2 2026, and advertising and retail are expanding alongside a strong balance sheet. AWS revenue reached $42.23 billion last quarter with a $496 billion backlog, while total operating income rose 43.24% to $27.46 billion. The author prefers Amazon over Microsoft and Walmart for its higher operating margin, 11.16% versus near 4% at Walmart. The main risk is about $200 billion of planned 2026 capex, which pushed trailing free cash flow to -$7.6 billion. The author argues most AI capacity is contracted for at least five-year terms, so the spending should pay back.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.8T |
| Close on 10/12/2026 | 259.53 |
| Change that session | -1.11% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Are consumer budgets in for a fright this Halloween season?
- Sector Update: Tech Stocks Fall Tuesday Afternoon
- Is Amazon Stock Poised to Gain on Strong Free Cash Flow Growth?
- Amazon Wants to Pay $7 Billion for a 3-Year-Old AI Startup That Makes AI Run Faster on Nvidia’s Chips and Its Own
- Tech Selloff Deepens as Bank Earnings Fuel Stock Market Rotation
- Amazon Analysts Slash Price Targets Ahead Of Q3 – Wells Fargo Sees AWS Acceleration To Continue In Q4
Get briefings and signals on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the morning, midday and evening briefing of each market and important news as it happens.