Amazon Slides 7% Premarket as AI Capex Fears Overshadow 39% AWS Growth
AMZN sits 16% above its 52-week low of $196 on elevated volume (2.3× avg).
Summary
Amazon is down more than 7% in Friday premarket trading at $226.35, extending Thursday's 4% decline, after a Q3 double miss: revenue of $201.94B versus the $202.31B estimate and EPS of $1.89 versus $1.97 expected. The offset is AWS, which grew 39% to $46B — its fastest pace in nearly five years — and management guided Q4 revenue to $240B-$247B against a $244.51B consensus, with CEO Andy Jassy expecting AWS growth above 40% in both 2027 and 2028. The real fight is spending: roughly $220B of capex this year and negative trailing free cash flow have analysts demanding visibility on when the peak arrives, while the retail side faces soft consumer demand and the longer-term threat of AI shopping assistants. Nvidia is the secondary read-through — Gene Munster noted rising Trainium chip demand could challenge NVDA even as broader cloud buildout helps AI infrastructure broadly. Q4 results will show whether AWS can hold 40% growth while capex peaks.
At the time of this announcement, AMZN was trading at $227.50 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.6T. The 52-week trading range was $196.00 to $287.20. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.