The company's fourth-quarter revenue target of $240.0 billion to $247.0 billion largely lagged behind Wall Street's expectation of $244.51 billion. Massive quarterly capital expenditures surged roughly $20 billion beyond analyst forecasts, accelerating cash depletion on a trailing 12-month basis. Despite the retail caution, the cloud computing division posted its strongest expansion in nearly five years to help offset consumer-facing softness. Amazon remains dedicated to maintaining an annual capital expenditure budget of roughly $220 billion to expand its footprint in artificial intelligence, delivery networks, and cloud facilities.
Key points
Massive capital spending to build out artificial intelligence capabilities and data cente…: Massive capital spending to build out artificial intelligence capabilities and data center infrastructure is significantly depressing corporate liquidity.
Holiday quarter revenue projections indicate that consumer spending faces pressure from e…: Holiday quarter revenue projections indicate that consumer spending faces pressure from elevated living expenses and fuel prices.
Robust cloud computing performance remains the primary growth driver amid widespread caut…: Robust cloud computing performance remains the primary growth driver amid widespread caution across the retail sector.
Sources checked by our analysis pipeline: 1
Oct 29 : Amazon.com on Thursday reported a massive cash burn in the third quarter and forecast holiday-quarter revenue largely below Wall Street estimates, sending shares lower.
Investors soured on shares of the company, driving them down about 5 per cent in extended trading. The shares had declined 4.3 per cent in regular trading to end at $243.79.
The Seattle-based retailer expects revenue of between $240.0 billion and $247.0 billion in the fourth quarter, compared with analysts' average estimate of $244.51 billion, according to data compiled by LSEG. The company said it burned $42.4 billion on a trailing 12-month basis in the September quarter, driven by capital expenditure of $77.26 billion which was some $20 billion above estimates, according to data compiled by LSEG.
Amazon reported cash burn of $7.6 billion in the prior quarter, and generated $14.8 billion in the third quarter of last year.
Jesse Cohen, a senior analyst at Investing.com, pointed to Amazon's free cash flow and "weak guidance" as reasons for the share decline. "Amazon's third-quarter report landed as a double disappointment."
The multi-billion-dollar tie-up aims to integrate DoorDash's global logistics network with Instacart's deep grocery technology to mount a stronger defense against retail giants like Walmart and Amazon. If cleared by regulators and shareholders, the combined entity would give consumers expanded store access and consolidated membership plans. However, retail analysts warn the union could diminish marketplace competition, potentially driving up delivery costs for shoppers while curbing merchant bargaining power.
The pharmaceutical giant adjusted its medium-term financial projections upward to reflect stronger expectations for its broader portfolio. Meanwhile, federal health officials have targeted the flagship HIV medication for substantial government price reductions later this decade. These impending regulatory discounts will reshape the drugmaker's long-term revenue profile under federal healthcare programs.
Alphabet's aggressive push into artificial intelligence has begun cannibalizing its primary moneymaker by curbing the volume of advertisements sold through standard search queries. Massive capital expenditures dedicated to funding these advanced technologies triggered a rare quarterly cash deficit, intensifying investor panic over whether big tech firms can monetize AI before eroding their established profit centers.