Amazon misses on earnings and holds capex steady, adding to AI spending jitters
Amazon’s cloud unit posted its fastest growth in nearly five years as the company kept capital spending guidance at about $220 billion.
- On Thursday, Amazon reported third-quarter results revealing a negative free cash flow of $42.4 billion for the trailing 12 months as massive artificial intelligence infrastructure investments strained company liquidity.
- Amazon CEO Andy Jassy confirmed the company maintained its $220 billion capital expenditure forecast for 2026, citing surging demand that left cloud capacity "largely sold out" for next year.
- AWS revenue surged 39% to $46 billion in the third quarter, the fastest growth in nearly five years, while the company laid off more than 57,000 employees since 2022 to operate efficiently.
- Following the earnings report, shares fell more than 6% in after-hours trading Thursday after Amazon provided fourth-quarter revenue guidance between $240 billion and $247 billion, below Wall Street estimates.
- Analysts expect capital spending to exceed $280 billion in 2027 as Amazon prioritizes building data centers to meet surging artificial intelligence demand, testing investor patience on returns from massive infrastructure investments.
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Reformatorisch Dagblad
Technology and e-commerce giant Amazon achieved higher revenue and profit in the third quarter with its cloud division. Demand for computing power and server storage space is growing rapidly due to the rapid development of artificial intelligence, and Amazon is the world's largest supplier of this. At the same time, Amazon's expenses rose sharply.
Amazon is not only the world's largest online retailer, but also a leading player in cloud services. In the AI boom, this ensures growth - but also brings high costs for new data centers.
berlingske.dk
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My Mother Lode
VINnewsAmazon’s 3Q results miss analysts’ estimates, but posts solid sales gains in cloud computing unit
NEW YORK (AP) — Amazon offered a cautious sales outlook for the current fourth quarter that encompasses the critical holiday shopping period after delivering fiscal third-quarter results that came in below Wall Street analysts’ expectations. The Seattle-based tech giant, however, posted strong sales growth in its prominent cloud computing unit. Sales in its so-called Amazon...
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