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Amazon Earnings Miss as AI Spending Risks Grow

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Amazon Earnings Miss as AI Spending Risks Grow

60 sourcesUpdated Nov 2, 20261 min read

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Amazon Earnings Miss as AI Spending Risks Grow — © IJR

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Amazon’s third-quarter 2026 revenue rose 12% year over year to $201.9 billion, but revenue and earnings per share of $1.89 narrowly missed analysts’ expectations, and its fourth-quarter sales outlook was softer than expected. Net income was $20.69 billion; the year-earlier quarter had included a gain on Amazon’s Anthropic investment. AWS revenue rose about 39% to roughly $46 billion, with operating income of $28.1 billion and a record 13.9% operating margin; Amazon also projected roughly 40% annual cloud growth in 2027 and 2028, citing strong demand and capacity constraints. Amazon spent $77.3 billion on capital investment in the quarter and maintained a roughly $220 billion spending plan for 2026, with spending expected to rise further in 2027; trailing 12-month free cash flow showed a $42.4 billion outflow. Shares fell sharply as investors weighed the AI infrastructure costs against potential returns, while AWS demand and a $578 billion backlog supported optimism.

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Oct 30, 2026Nov 2, 2026

Nov 2, 2026Amazon Earnings Miss as AI Spending Risks Grow.
Nov 1, 2026Disappointing results and outlooks from Amazon and Intel intensified a two-day sell-off in technology stocks.
Oct 30, 2026Alphabet shares fell roughly 12% after missing Q3 revenue estimates, pulling the Dow down 389 points.

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How it spread

Broke thelec.net · Oct 30, 12:23 AM ETLeft +6hCenter +9hRight +12h126 sources +3d on

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Left· 4 sources

“Amazon Q3 Earnings Disappoint on AI-Driven Cash Burn and Weak Guidance · Digg”

Digg · Oct 30, 2026

Center· 4 sources

“President Capital Adjusts Price Target on Amazon to $311 From $379”

MarketScreener · Nov 2, 2026

Right· 1 source

“Amazon shares fall on $42.4b cash burn”

Manila Times · Oct 30, 2026

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Finance

Five Stocks’ Short Interest Jumps Up to 629%

Short interest increased in October across all five companies: Perimeter Medical Imaging AI rose the most, up 628.8%, followed by Arcadia Biosciences (286.3%), Regentis Biomaterials (223.8%), PIMCO Income Strategy Fund (139.3%) and Bumrungrad Hospital (118.3%). Arcadia had the highest reported share of stock sold short, at 14.9%.

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