Amazon shares drop 9% after weak Q3 and heavy AI spending
In short
Amazon shares dropped more than 9% after the company missed expectations for third-quarter revenue and earnings. Strong AWS growth was not enough to offset worries about heavy AI spending, negative free cash flow, cautious holiday guidance, and about $220 billion in planned 2026 capital spending.
This matters because investors are questioning how quickly Amazon can turn that spending into returns. The report does not say what analysts now expect for the stock.
What the reporting says
Amazon shares fell more than 9% after third-quarter revenue and earnings missed expectations. The publisher summary says strong AWS growth was outweighed by heavy AI investment, negative free cash flow, cautious holiday-quarter guidance, and plans for about $220 billion in 2026 capital expenditure. The immediate question is whether AWS growth can help the stock recover; the reporting does not say if analysts changed ratings or targets.
Why it matters
Amazon shares fell more than 9% after third-quarter revenue and earnings missed expectations, according to the publisher summary. AWS growth was described as strong, but heavy AI investment pushed free cash flow negative and guidance for the holiday quarter stayed cautious. The company also plans about $220 billion in 2026 capital expenditure. The market focus is whether AWS can help repair investor sentiment, but the reporting does not give a recovery timeline.