Amazon reported third-quarter revenue up 12.1% to $201.94B and its highest-ever operating margin, but capex of $77.26B exceeded operating cash flow of $42.42B. AWS revenue rose 39% to $45.98B with a $578 billion backlog, while operating income climbed 61.2% to $28.08B and AWS posted a 38.7% operating margin. Quarterly interest expense rose to $1.691B from $538M a year earlier, and trailing free cash outflow stands at $42.4B. The article rates Amazon a Buy at $245.63, arguing the backlog covers the capex, and the average analyst target of $327.70 implies 33.4% upside. The argument weakens if AWS growth slows in 2027 or AWS margins are squeezed by a greater AI mix.
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Related tickers and likely impact
AMZN
• NeutralAmazon
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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