Amazon.com stock weighs AWS growth against AI investment costs
Published on 11/04/2026 at 12:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAmazon balances cloud growth and investment
- AWS acceleration strengthened Amazon's cloud position as the company expands its artificial intelligence infrastructure.
- Management expects fourth-quarter sales and operating income to rise from the prior-year period.
- Cash investment remains the main issue for investors assessing the stock's long-term return potential.
Amazon reported its third-quarter results on Thursday, October 29, with faster cloud growth offset by a heavy artificial intelligence investment cycle. The company said in its third-quarter release that net sales rose to 201.9 billion US dollars from 180.2 billion US dollars a year earlier.
Operating income increased to 28.1 billion US dollars from 17.4 billion US dollars, lifting the operating margin to 13.9 percent. Net income declined to 20.7 billion US dollars, or 1.89 US dollars per diluted share, from 21.2 billion US dollars, or 1.95 US dollars per share, primarily because the year-earlier quarter benefited from investment gains tied to Anthropic.
AWS growth reaches new pace
Amazon Web Services remained the central earnings driver. AWS revenue rose 39 percent year over year to 46.0 billion US dollars, while operating income climbed to 17.8 billion US dollars from 11.4 billion US dollars. AWS represented 23 percent of consolidated sales, up from 18 percent in the year-earlier quarter.
Chief Executive Andy Jassy said AWS revenue growth exceeded 39 percent in the quarter and that the company expects growth above 40 percent in both 2027 and 2028. Amazon also said Fortune 500 spending on its Bedrock inference service increased nearly sevenfold year over year, while Bedrock token volume grew nearly seventeenfold.
Investment raises cash flow pressure
The stronger cloud performance comes with a substantial funding requirement. Amazon spent 77.3 billion US dollars on property and equipment in the quarter. Trailing-twelve-month free cash flow fell to an outflow of 42.4 billion US dollars from an inflow of 14.8 billion US dollars a year earlier, as spending on artificial intelligence infrastructure increased.
Amazon continues to expect cash capital expenditure of approximately 220 billion US dollars for 2026. Jassy said AWS demand remains strong and indicated that spending should rise meaningfully in 2027. For investors, the key question is whether accelerating cloud revenue and operating income will eventually produce returns that justify the infrastructure buildout.
Holiday quarter sets next test
Amazon expects fourth-quarter net sales of 240.0 billion to 247.0 billion US dollars and operating income of 28.5 billion to 33.5 billion US dollars. The outlook includes expected advertising growth in the high teens and reflects the seasonal importance of the holiday period.
Amazon.com stock traded at 229.68 euros on Lang & Schwarz at 12:40 CET on Wednesday, November 4, 2026. The real-time quote of Amazon.com stock is available on the stock page.
The broader US market remains the relevant setting for Amazon.com stock; investors can follow the S&P 500 market theme.
Further earnings commentary, investment developments and operating updates are collected in more news and analyses on Amazon.com stock.
Amazon.com stock at a glance
- Company: Amazon.com Inc.
- ISIN: US0231351067
- Stock: AMZN
- Trading venue: Lang & Schwarz
- Price: 229.68 euros at 12:40 CET on November 4, 2026
- Third-quarter sales: 201.9 billion US dollars
- AWS sales: 46.0 billion US dollars
- 2026 cash capital expenditure outlook: approximately 220 billion US dollars
