Amazon shares trade around $250, more than 10% below their August 3 closing high of $284.02, even though the October 29 third-quarter report showed the company's highest operating margin in its history. AWS revenue rose 39% to $46.0 billion, marking six straight quarters of faster growth, with AWS operating income up 55% to $17.8 billion and backlog reaching $578 billion. Total operating income reached $28.1 billion, up 61% (about 29% excluding year-ago special charges), while third-quarter capital expenditures hit $75.9 billion and trailing 12-month free cash flow was negative $42.4 billion. The author said neither of the two conditions he set for the second half of his position occurred, namely AWS growth falling toward 20% or operating income landing below the $22.5–26.5 billion guidance range. He said he would buy the remaining half of the position now, while expecting free cash flow to look weak for a while.
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AMZNearningscloud computingAI investment
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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 | $2.6T |
| Close on 11/02/2026 | 245.63 |
| Change that session | +2.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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