The tech giant's heavy investments drove trailing 12-month cash burn to $42.4 billion, burdened by $77.26 billion in capital expenditure that beat analyst expectations by roughly $20 billion. Although cloud revenue surged 39% to reach $46 billion, advertising revenue missed projections for the first time in seven quarters at $19.6 billion. Andy Jassy defended the elevated outlay, projecting that Amazon Web Services could generate $1 trillion in revenue within five years.
Key points
Total capital expenditures are anticipated to reach $220 billion this year, with manageme…: Total capital expenditures are anticipated to reach $220 billion this year, with management guiding for meaningfully higher spending next year.
Fourth-quarter revenue guidance midpoint of $243.5 billion arrived slightly under analyst…: Fourth-quarter revenue guidance midpoint of $243.5 billion arrived slightly under analyst forecasts, compounding near-term investor pressure.
Leadership remains committed to aggressive AI investments, anticipating that cloud operat…: Leadership remains committed to aggressive AI investments, anticipating that cloud operations could achieve a $1 trillion run rate within five years.
Sources checked by our analysis pipeline: 1
Oct 29 : Amazon.com on Thursday reported a massive cash burn in the third quarter, sending shares sharply lower, while it signaled higher capital expenditures next year atop an already huge amount in 2026.
Amazon's cloud computing cash cow, Amazon Web Services, continued to accelerate, but the company's aggressive spending to capture AI demand overshadowed broader growth that investors typically crave — with more such spending to come.
The Seattle-based retailer expects revenue between $240.0 billion and $247.0 billion in the fourth quarter, bracketing estimates of $244.51 billion, according to LSEG, but its midpoint of $243.5 billion came in slightly lower.
Investors soured on the company, driving shares down as much as 7 per cent in extended trading, and the shares had declined 4.3 per cent in regular trading to end at $243.79. The drop mirrored a broader selloff among tech stocks on Thursday after Intel warned of flagging PC revenue through next year's first half, sending its shares down 23 per cent in after-hours trading. Alphabet shares fell 12 per cent during the regular session, their worst single-day percentage…
Amazon's massive investments in entertainment are yielding significant financial returns four years after the company completed its multibillion-dollar acquisition of MGM. Bolstered by major content releases like the hit film Project Hail Mary, the streaming division has evolved into a self-sustaining powerhouse. This shift demonstrates the tech giant's ability to turn high-cost digital media operations into genuinely independent profit drivers.
Executive leadership anticipates consumer electronics weakness extending well into 2027 as high data center demand diverts memory and manufacturing resources away from personal computers. Compounding these demand headwinds, severe operational disruptions and supplier shortages are constraining server processor deliveries. This ongoing shift exposes the chipmaker to prolonged volatility while it attempts to balance legacy PC exposure with expanding infrastructure investments.
The outcome marks a favorable legal development for the company as it confronts widespread litigation over its flagship herbicide. A jury cleared the manufacturer of liability regarding claims that exposure to the chemical led directly to the plaintiffs' medical diagnoses. The decision successfully concludes this specific legal challenge concerning product safety in the American court system.