AWS Growth Hits 28%, But Free Cash Flow Drops to $1.2B Amid $200B AI Capex
AMZN sits 26% above its 52-week low of $196.
Summary
AWS revenue grew 28% YoY in Q1, but trailing 12-month free cash flow collapsed to $1.2B as Amazon pours $200B into AI infrastructure. Operating cash flow surged 30% to $148.5B, highlighting the capex strain. Separately, Amazon Business targets $60B in annual sales, a 71% jump from 2023, while EU regulatory risk looms as lawmakers warn the Digital Markets Act could uniquely burden AWS. Wells Fargo raised its price target to $322, citing manageable AI costs. This follows the June 25 report on AWS growth and the $40B bond sale in July to fund expansion.
At the time of this announcement, AMZN was trading at $246.80 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.7T. The 52-week trading range was $196.00 to $278.56. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.