The company projected fourth-quarter revenue of $240.0 billion to $247.0 billion, which falls largely below Wall Street expectations of $244.51 billion. Massive spending drove this financial strain, with capital expenditures reaching $77.26 billion and leading to a trailing 12-month cash burn of $42.4 billion. In addition to high costs, advertising revenue rose only 12% to $19.6 billion, missing consensus estimates for the first time in seven quarters. To offset consumer headwinds, the company is actively expanding rural U.S. delivery and introducing faster global shipping services.
Key points
Heavy ongoing investments in artificial intelligence infrastructure are driving capital e…: Heavy ongoing investments in artificial intelligence infrastructure are driving capital expenditures toward a planned $220 billion annual total.
Softening advertising growth and a conservative fourth-quarter outlook point to challengi…: Softening advertising growth and a conservative fourth-quarter outlook point to challenging consumer spending conditions ahead.
Strong enterprise momentum in cloud computing remains the company's fastest-growing segme…: Strong enterprise momentum in cloud computing remains the company's fastest-growing segment despite widespread pressure on other units.
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 the company, driving shares down nearly 7 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.
"The free cash flow looks like the ugly part of the report," said Dave Wagner, portfolio manager at Aptus Capital Advisors. "Operations generated plenty of cash but their capex just absolutely swallowed it."
Softening customer demand across key markets in Hong Kong and the Chinese Mainland pressured the financial performance of AIA Group during the third quarter. The regional insurance giant experienced a reduction in future profit generation from newly acquired policies, reflecting localized market headwinds. This pullback affects a vital performance barometer that market analysts monitor to project the long-term expansion of the business.
Stablecoin issuers acted swiftly after Binance reported a major security breach affecting its ecosystem. The decisive move targets illicit movements across the network and prevents unauthorized actors from liquidating digital assets. This coordination highlights how centralized issuers can intervene directly on-chain during major exchange incidents.
Security researchers and industry analysts project that hot wallet losses range between $2 billion and $5.7 billion, which would mark one of the largest cyberheists ever recorded. Stablecoin issuers moved rapidly to limit the damage by freezing over $2.3 billion in assets connected to the compromised accounts. Exchange leadership continues to assert that user balances will be made whole despite ongoing questions about who executed the attack.