Amazon shares rose 5% to $251.77 in morning trading, rebounding from its Q3 2026 report on October 29, which showed EPS of $1.89 against the $1.96 consensus estimate. AWS generated $46 billion in revenue and $17.8 billion in operating income, and CEO Andy Jassy said AWS demand remains 'exceptionally strong' with projected revenue growth above 40% in both 2027 and 2028. Trailing 12-month free cash flow swung to an outflow of $42.4 billion, driven largely by AI investments, and Amazon estimated 2026 capex at $220 billion. JPMorgan analyst Doug Anmuth projects Amazon capex of $395 billion in 2027 and $476 billion in 2028. Walmart rose 2% to $126.29, while Alphabet gained 1% to $283.10 amid concerns about its AI spending and negative free cash flow.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMZNearningscloud computingAI investment
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Amazon Stock Fell After Earnings. Jim Cramer Says Buy Right Here
Amazon shares fell after third-quarter results, as revenue of $201.94B came in just below the $202.20B estimate and EPS of $1.89 missed the $1.96 consensus. Fourth-quarter sales guidance of $240.0B to $247.0B was below estimates at the midpoint, while capex reached $77.26B in the quarter and trailing free cash flow was an outflow of $42.4B. On the other side, operating income rose 61.15% to $28.08B, a 13.9% operating margin the company called its highest ever, and AWS revenue grew 39.3% to $46B with a $578B backlog. CEO Andy Jassy forecast AWS growth above 40% in 2027 and 2028. Jim Cramer argued this is a good time to accumulate the stock, UBS raised its price target to $352 from $348, and the article flags rising capex and interest expense of $1.691 billion versus $538 million a year earlier.
- AMZN Q3 deep dive: cloud surge and AI investments drive mixed market reception
Amazon's third-quarter 2026 revenue rose 12.1% year on year to $201.9 billion, in line with the $202.3 billion analyst estimate, while GAAP EPS of $1.89 missed the $1.96 expectation by 3.4%. Operating margin widened to 13.9% from 9.7% a year earlier. AWS grew 39.3%, its fastest pace in nearly five years and an acceleration for a sixth straight quarter, driven by AI infrastructure demand and custom chips such as Trainium and Graviton, which saved customers more than $2 billion in Q3 alone. Management expects next-quarter revenue of about $243.5 billion and said it believes AWS can grow north of 40% in 2027 and 2028, although near-term profitability may fluctuate with higher operating costs. Prime members ordering groceries with same-day delivery have tripled, and advertising growth is expected to return to the high teens after a slowdown tied to Prime Day timing.
- Amazon Plans to Spend More on AI. Here’s Why the Stock is a Once-in-a-Decade Buy Hiding in Plain Sight.
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.
- Amazon Just Lost $42 Billion in Free Cash Flow. Is It a Red Flag for Investors?
Amazon posted strong growth in the quarter, with revenue up 17% to $201.9 billion after adjusting for foreign exchange and the Prime Day shift, and operating income up 61% to $28.1 billion. Yet the stock fell 1.4% in the regular session and tumbled about 7% after hours, as investors are skeptical of its massive AI-related capital expenditure, planned at $220 billion this year. In the third quarter alone, Amazon reported a free cash flow loss of $33.4 billion while spending $77.3 billion on property and equipment, and it has burned $42 billion in free cash flow over the last four quarters. The article says this equals 5.4% of trailing revenue, comparable to past cycle peaks such as 4.8% in 2022. Amazon forecasts 40% AWS growth over the next two years, and the author argues the spending could pay off through AWS.
- Amazon (AMZN) Stock After Q3 Earnings: Buy the Dip, Sell, or Hold?
Amazon (AMZN) shares fell roughly 7% in Friday's premarket trading after its Q3 results missed expectations: EPS of $1.89 versus the $2.01 Zacks consensus, and revenue of $201.94 billion, just short of $202.11 billion. Operating income rose 61% to $28.1 billion, with a record 13.9% operating margin. AWS revenue grew 39% to $46 billion, its fastest pace in nearly five years, and AWS operating income rose 55% to $17.8 billion, while CEO Andy Jassy projected AWS growth above 40% in 2027 and 2028. However, Amazon reaffirmed its $220 billion 2026 capital expenditure outlook, mainly for AI infrastructure, pushing Q3 free cash flow to negative $33.5 billion and the trailing 12-month outflow to $42.4 billion. For Q4, Amazon guided to $240–247 billion in revenue, or 12%–16% growth, close to the $245.65 billion consensus forecast.
- Learn Why The Bull Case For Amazon.com (AMZN) Could Change Following Earnings Miss
Amazon.com reported Q3 2026 revenue of US$201.9 billion and net income of US$20.7 billion, missing earnings expectations. Capital expenditure focused on AI rose to about US$77.3 billion in the quarter, mainly for AI data centers and custom chips for AWS, and the company reiterated roughly US$220 billion for the full year, leaving free cash flow deeply negative. Near term, retail and advertising trends look comparatively softer. The article says AWS needs to turn this capacity into revenue from its US$578 billion backlog. The analyst narrative points to revenue of US$1,161.3 billion and earnings of US$163.0 billion by 2029, up from US$135.3 billion today.
Related markets
Latest news
- It may take weeks to tally the midterm election results. Here’s why Wall Street isn’t worried.
The article stresses that economic and political uncertainty must be distinguished when assessing markets. It argues that only economic uncertainty really moves the stock market.
- The bond-market rally is defying the typical investing playbook. Here’s why.
The U.S. economy grew at its fastest pace in over five years in the third quarter, according to the Commerce Department's initial GDP reading. Despite a run of robust data, Treasury bonds staged a surprise rally in October.
- Entergy Q3 Earnings Call Highlights
Entergy reported third-quarter adjusted EPS of $1.98, driven by customer growth, hotter weather, industrial sales and record peak demand, and raised the low end of its 2026 adjusted EPS guidance by $0.10. An amended agreement with Google for the West Memphis data-center campus is expected to add at least $500 million in Arkansas customer bill savings, and data-center and industrial load opportunities could total up to 17 gigawatts. Planned 2027–2030 capital spending rose by about $1.5 billion for battery storage, transmission and other growth investments. Chair and CEO Drew Marsh said the results reflected financial, regulatory and operational progress.
- Why Coeur Mining Bears Were Right Before The Drop
Coeur Mining shares lost 25.3% year to date including dividends, against a bullish case built on gold at $4,000, silver at $100, a 30% free cash flow margin and a 10x FCF multiple. The shares started the period at US$17.83; the bullish narrative put fair value at US$21.6 on 51.2% revenue growth and a 9.5% profit margin, while the cautious view set US$13.64 with 14.3% revenue growth and a 33.2% profit margin and flagged regulatory and jurisdictional risk. Q2 2026 revenue reached US$1.09b versus US$480.65m a year earlier, helped by the New Gold acquisition, and net income rose, but the net margin fell from 14.7% to 11.2%. The shares now trade at US$13.1, and the selected narrative assumes production growth, cost discipline and asset integration will sustain revenue and margin strength. The article concludes that the original thesis depended heavily on margins, not just metal prices or output.
- Bitcoin ETF outflows hit $643M, led by BlackRock and Fidelity
Bitcoin ETFs saw net outflows of $643 million on Friday, led by BlackRock at $233.7 million, followed by Fidelity at $201 million and Arc B at $129.5 million. The funds had also recorded net outflows in each of the four preceding sessions, and the week was still only down $202 million. The host notes that ETF flows tend to react to market moves because these funds don't trade 24/7 like Bitcoin, so the impact of after-hours events often shows up the next day. He contrasts this with the worst hack in history, worth $6 billion, and a sharp tech sell-off in which Intel fell 30% and Alphabet and Amazon were each down about 12% at one point overnight, while Bitcoin fell only 4–5% and gold also declined.
- BetterInvesting™ Magazine Update on Amazon.com and UnitedHealth Group
BetterInvesting Magazine's committee named Amazon.com (NASDAQ: AMZN) its “Stock to Study” and UnitedHealth Group (NYSE: UNH) its “Undervalued Stock” in the January–February 2027 issue, for informational and educational use. The organization says these picks are not endorsed or recommended for purchase by NAIC/BetterInvesting. It urges investors to conduct their own review using the Stock Selection Guide before making any investment decision. Non-members can access a limited trial version of the online analysis tools to view fundamental data for both companies.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.