Amazon earnings live: Q3 earnings miss sends stock lower
Amazon stock slipped following its third-quarter earnings report as both earnings and revenue fell short of Wall Street expectations. The company posted net income of US$20.7b on revenue of US$201.9b alongside a ballooning negative free cash flow. Massive capital expenditures dedicated to meeting surging demand for artificial intelligence services weighed on investor sentiment, while Amazon AWS posted 39% revenue growth. Additionally, Amazon projected fourth-quarter sales below Wall Street estimates, compounding concerns over heavy technology spending and adding to overall market jitters regarding corporate capital expenditure.
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- ✓ Amazon posted net income of US$20.7b on revenue of US$201.9b in the third quarter.
- ✓ Amazon AWS posted 39% revenue growth during the quarter.
- ✓ Amazon projected fourth-quarter sales below Wall Street estimates.
- ✓ Amazon's negative free cash flow ballooned during the third quarter.
What changed
Amazon reported third-quarter financial results that missed Wall Street consensus expectations and issued fourth-quarter sales guidance below forecasts.
Live updates
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Amazon Q3 Earnings Miss and Heavy AI Spending Send Stock Lower
Amazon stock slipped following its third-quarter earnings report as both earnings and revenue fell short of Wall Street expectations. The company posted net income of US$20.7b on revenue of US$201.9b alongside a ballooning negative free cash flow. Massive capital expenditures dedicated to meeting surging demand for artificial intelligence services weighed on investor sentiment, while Amazon AWS posted 39% revenue growth. Additionally, Amazon projected fourth-quarter sales below Wall Street estimates, compounding concerns over heavy technology spending and adding to overall market jitters regarding corporate capital expenditure.
Why it matters
The disappointing earnings release provides a mixed financial picture for Wall Street, highlighting the tension between robust cloud growth and soaring costs. Amazon is pouring heavy investments into artificial intelligence infrastructure to capture market share. However, these steep outlays triggered a profit reset that spooked investors despite strong operational numbers in specific segments.
What is confirmed
- Amazon posted net income of US$20.7b on revenue of US$201.9b in the third quarter.
- Amazon AWS posted 39% revenue growth during the quarter.
- Amazon projected fourth-quarter sales below Wall Street estimates.
- Amazon's negative free cash flow ballooned during the third quarter.
Still unconfirmed
- The stock decline was driven more by emotion around the profit reset than by underlying business fundamentals.
What to watch next
- Fourth-quarter sales actuals compared to the company's lowered guidance
- Further updates on capital expenditure levels for artificial intelligence infrastructure
- AWS revenue growth trajectory in subsequent quarters
confidence 100%Sources used for this update (18)
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- www.zerohedge.com — Futures Rise, Oil Slides As Iran's Supreme Leader Talks Peace And Shrugs Off Ras Tanura Attack
- Yahoo Finance — Amazon earnings live: Q3 earnings miss sends stock lower
- Axios — Amazon shares sink as it spends heavily on AI
- CNBC — Amazon AWS posts 39% revenue growth as cloud rivals also accelerate
- Bloomberg.com — Amazon Spending Soars on Effort to Meet Demand for AI Services
- Reuters — Amazon projects fourth quarter sales below estimates
- CNBC — Amazon misses on earnings and holds capex steady, adding to AI spending jitters
- WSJ — Amazon Stock Drops on Wall Street Miss, Despite Biggest Cloud Growth in Years
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