Amazon CEO Andy Jassy makes a strong prediction on Amazon stock

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1. 2h ago

   Amazon CEO Andy Jassy Predicts Two Trillion-Dollar Businesses

   Amazon shares dropped after a third-quarter earnings miss and fourth-quarter sales projections that fell below expectations. Heavy spending on artificial intelligence pushed the company's cash burn to a record, sparking investor jitters over capital expenditures. Amid the financial pullback, Chief Executive Officer Andy Jassy offered a long-term forecast that Amazon could house two trillion-dollar revenue businesses, specifically naming AWS and its retail stores, within five to ten years. Wall Street analysts expressed positive views on the cloud outlook even as massive AI infrastructure costs weighed on the stock.

   Why it matters

   The technology giant reported accelerating cloud growth alongside AWS revenue reaching $46 billion in the third quarter. However, the aggressive push to meet surging demand for artificial intelligence services drove up capital spending and cash burn, creating tension between short-term financial pressures and long-term expansion goals. Jassy pointed to potential milestones for AWS, noting that if the unit grows 40 percent a year, its run rate could reach about $1 trillion in roughly five years.

   What is confirmed

   • Amazon CEO Andy Jassy predicted the company may have two trillion-dollar revenue businesses, AWS and its stores, within five to 10 years.
   • AWS revenue reached $46 billion in Amazon's third quarter.
   • Amazon shares sank following a third-quarter earnings miss, heavy AI spending, and fourth-quarter sales projections below estimates.

   Still unconfirmed

   • AWS could reach a $1 trillion run rate in roughly five years if it grows 40 percent a year.

   What to watch next

   • Whether AWS maintains an annual growth rate of 40 percent toward the projected trillion-dollar run rate.
   • Further quarterly reports reflecting the return on investment from heavy AI infrastructure spending and cash burn.
   Sources used for this update (26)

   1. 247wallst.com — 24/7 Wall St. - Insightful Analysis and Commentary for U.S. and Global ...
   2. seekingalpha.com — Patient Capital Management Q3 2026 Commentary
   3. www.fool.com — Forget the Recent Delivery Beat: Here's the Key Number That Will Decide Investors' Reaction to Tesla's Earnings | The Motley Fool
   4. Yahoo Finance — Amazon earnings live: Q3 earnings miss sends stock lower
   5. Axios — Amazon shares sink as it spends heavily on AI
   6. Bloomberg.com — Amazon Spending Soars on Effort to Meet Demand for AI Services
   7. Reuters — Amazon projects fourth quarter sales below estimates
   8. CNBC — Amazon misses on earnings and holds capex steady, adding to AI spending jitters
   9. TechCrunch — AWS will be a $1T business, Jassy says — but first, it will spend big
   10. GeekWire — Andy Jassy’s prediction: Amazon could have two $1 trillion businesses within a decade
   11. Yahoo Finance — Amazon's AI build-out just pushed its cash burn to a record: Chart of the Day
   12. Seeking Alpha — What analysts are saying about Amazon after earnings (AMZN:NASDAQ)
   confidence 95%