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● LIVE Updated 2h ago · 22 sources tracked

Amazon Earnings: Why the Stock Is Tanking

Amazon stock declined after the company missed third-quarter earnings expectations and issued a cautious sales outlook for the fourth quarter. Despite the dip, Amazon Web Services achieved 39% growth, its fastest pace in nearly five years. Investors remain concerned by record cash burn and heavy capital expenditures linked to AI infrastructure. CEO Andy Jassy maintains that AWS will eventually become a $1 trillion business, though he acknowledges the necessity of significant upfront spending to reach that goal.

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  • ✓ Amazon missed third-quarter earnings expectations.
  • ✓ AWS growth reached 39%, the fastest rate in nearly five years.
  • ✓ Amazon projected fourth-quarter sales to be below estimates.
  • ✓ The company is spending heavily on AI infrastructure.
🛡️ Source Corroboration: 22 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Amazon reported Q3 earnings misses and projected fourth-quarter sales below estimates.

Live updates

  1. Amazon Shares Sink Following Q3 Earnings Miss and High AI Spending

    Amazon stock declined after the company missed third-quarter earnings expectations and issued a cautious sales outlook for the fourth quarter. Despite the dip, Amazon Web Services achieved 39% growth, its fastest pace in nearly five years. Investors remain concerned by record cash burn and heavy capital expenditures linked to AI infrastructure. CEO Andy Jassy maintains that AWS will eventually become a $1 trillion business, though he acknowledges the necessity of significant upfront spending to reach that goal.

    Why it matters

    The selloff reflects broader investor jitters regarding the cost of AI build-outs across Big Tech. This trend has contributed to nearly $1 trillion in lost value across companies including Google and Intel.

    What is confirmed

    • Amazon missed third-quarter earnings expectations.
    • AWS growth reached 39%, the fastest rate in nearly five years.
    • Amazon projected fourth-quarter sales to be below estimates.
    • The company is spending heavily on AI infrastructure.
    • Amazon's AI build-out has led to record cash burn.

    Still unconfirmed

    • Jim Cramer suggests buying Amazon stock at current levels.

    What to watch next

    • Fourth quarter sales results
    • Updates on AWS capital expenditure levels
    • Further guidance on AI monetization timelines
    Sources used for this update (28)
    1. www.globalbankingandfinance.com — Latest Banking & Finance News & Analysis
    2. stocktwits.com — Stocktwits - Stock Market Live Quotes, Social Community...
    3. seekingalpha.com — Patient Capital Management Q3 2026 Commentary
    4. www.newsbreak.com — Cathie Wood Predicts Oil Crashing to $30-$35 a Barrel as EVs Take Over Transportation: Says Demand Is 'Peaking’
    5. www.cnbc.com — Oil today: Iran, US, crude, wti, brent, trump
    6. today.rtl.lu — Digital services arm : Billionaire Ambani's Jio jumps 21% in market debut after record India IPO
    7. Axios — Amazon shares sink as it spends heavily on AI
    8. Reuters — Amazon projects fourth quarter sales below estimates
    9. CNBC — Amazon misses on earnings and holds capex steady, adding to AI spending jitters
    10. WSJ — Amazon Stock Drops on Wall Street Miss, Despite Biggest Cloud Growth in Years
    11. Yahoo Finance — Amazon earnings live: Q3 earnings miss sending shares lower
    12. GeekWire — AWS growth hits 39%, its fastest in nearly five years, as Amazon misses on earnings
    confidence 95%
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