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On October 30, 2026, Amazon CEO Andy Jassy reiterated on the quarterly earnings call that AWS is expected to become a trillion-dollar annual revenue business within the next 5 to 10 years, and he expects growth rates to exceed 40% in both 2027 and 2028. He also said that cash capital expenditures in 2026 will be about $220 billion, most of it directed to AWS, and will increase significantly further in 2027. On the same day, Amazon reported its third-quarter 2026 financial results: net sales rose 12% year over year to $201.94 billion, slightly below expectations; AWS net sales rose 39.3% year over year to $45.98 billion, the highest single-quarter growth rate in nearly five years. Purchases of property and equipment in the quarter reached $77.26 billion, and free cash flow over the past 12 months swung from an inflow of $14.79 billion in the same period a year earlier to an outflow of $42.36 billion; the company maintained its full-year 2026 cash capital expenditure guidance of about $220 billion unchanged. After the results were released, the stock fell by as much as more than 10% in after-hours trading.
AI-generated from public reports
Latest development · Report
AI stocks sold off again: Intel plunges 28.59%, Nvidia falls 4.22%, Nasdaq drops 2.86%Developments
2 confirmed developments
Jassy reiterates that AWS can become a trillion-dollar revenue business
Source:TechCrunch AI- Source:Sina Tech
Reports and discussion timeline
Browse reports and discussion by time. Their evidence levels remain distinct.
Oct 31
Yicai
AI stocks sold off again: Intel plunges 28.59%, Nvidia falls 4.22%, Nasdaq drops 2.86%
On October 30, US AI concept stocks were sold off again, with the Nasdaq falling 2.86%, its worst single-day performance since June, and the Philadelphia Semiconductor Index dropping 7.20%. Intel plunged 28.59% on weak guidance, Nvidia fell 4.22%, AMD dropped 10.88%, and CoreWeave's bond yields climbed while its stock fell 37% cumulatively in October. Capital shifted toward defensive sectors such as consumer staples and healthcare, with Walmart rising 1.86%.
Oct 30
36Kr · AI
Who Is Really Eating the AI Dividend: Looking at Profit Distribution Through Tech Giants' Financial Reports
The article reviews the latest financial reports of tech giants such as Meta, Amazon, and Google, noting that AWS revenue grew 39% year-over-year, but the group's free cash flow over the past 12 months turned negative at -$42.4 billion, and Alphabet's stock price fell 12.64% in a single day. Anthropic's prospectus shows revenue of $16.286 billion in the first half of 2026, a year-over-year increase of 1300%; compute and infrastructure costs during the same period reached $8.945 billion, and it signed minimum purchase commitments totaling $269.4 billion with Google, Amazon, and Microsoft. In a McKinsey survey, 80% of respondents said AI improved work efficiency, but only 37% believed AI made a positive contribution to corporate EBIT.
East Money
Google, Amazon, and Intel earnings miss expectations, computing power hardware stocks extend decline, Eoptolink falls over 10%
On October 30, affected by Google, Amazon, and Intel's earnings missing expectations and weak third-quarter reports from some A-share companies, computing power hardware stocks extended their decline, with Eoptolink and Victory Giant Technology falling over 10%. That day, the Shanghai Composite Index fell 1.44%, the ChiNext Index fell 4.13%, and 4,602 stocks across the market declined. Intel expects personal computer sales to continue slowing, with pressure lasting until 2028.
Wall Street Insights
Amazon Q3 Earnings: AWS Growth of 39.3% Misses Buy-Side Expectations, Advertising Growth Plummets to 12%
In the third quarter, Amazon's AWS revenue reached $45.984 billion, with year-over-year growth rising to 39.3%, slightly beating the Wall Street consensus of 38% but falling short of the buy-side threshold of over 42%; advertising business growth plunged from 26% to 12%, far below the 18% expectation, dragging the stock down 7% in after-hours trading. CEO Andy Jassy expects AWS to achieve growth of over 40% in both 2027 and 2028, and is expected to reach a scale of $1 trillion within five to ten years, while also planning to sell Trainium chips to customers outside AWS starting at the end of 2027. Jefferies and Goldman Sachs still maintain Buy ratings, with target prices of $330 and $375, respectively.
East Money
Amazon Q3 Earnings: AWS Revenue Up 39%, AI Investment Drives Second Consecutive Quarter of Negative Free Cash Flow
Amazon released its third-quarter earnings report, with revenue of $201.94 billion and earnings per share of $1.89, both below market expectations, and its stock fell more than 7% at one point after hours. AWS revenue was $45.984 billion, up about 39% year-over-year, the fastest growth rate in nearly five years, with operating income of $17.773 billion. Because AI-related purchases of property and equipment rose to $77.26 billion, the company posted negative free cash flow for a second consecutive quarter, with an outflow of $42.4 billion over the past 12 months, and it maintained its capital expenditure forecast of $220 billion for this year.
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Amazon CEO Andy Jassy: AWS Will Eventually Reach $1 Trillion in Annual Revenue
Amazon CEO Andy Jassy reiterated on the earnings call that AWS will become a $1 trillion annual revenue business in the next 5 to 10 years, and expects revenue growth of over 40% in both 2027 and 2028. AWS revenue grew 39% year-over-year in the quarter, reaching an annualized revenue of $184 billion; Amazon expects cash capital expenditures of about $220 billion in 2026, most of which will go to AWS, and spending will increase significantly further in 2027.
Cailian Press
Amazon Q3 earnings revenue and profit miss expectations, AWS revenue up about 39% but AI investment leads to $42.4 billion cash outflow
Amazon's third-quarter revenue was $201.94 billion and earnings per share were $1.89, both below market expectations, with the after-hours stock price falling more than 7% at one point. AWS revenue was $45.984 billion, up about 39% year over year, the fastest growth in nearly five years, but free cash flow outflow over the past 12 months reached $42.4 billion, which the company said was mainly due to increased spending on AI-related property and equipment. Amazon maintained its forecast of about $220 billion in capital expenditure for 2026 and expects spending to increase significantly in 2027.
Cailian Press
Amazon Earnings Call: AWS Quarterly Revenue of $46 Billion, Capital Expenditures to Continue Rising in 2027
Amazon's Q3 2026 earnings show AWS revenue of $46 billion, up 39.3% year over year, with $578 billion in backlog orders, and AI inference revenue accounting for more than half of AWS's AI revenue. Management expects AWS to grow at an annual rate above 40% in 2027-2028 and to approach $1 trillion in revenue within 5 to 10 years, but capital expenditures will be about $220 billion in 2026 and will rise significantly further in 2027, sending the company's shares down 7.3% after hours. The earnings call also mentioned that spending by Fortune 500 companies on Bedrock grew nearly 7x year over year, token call volume grew nearly 17x, and Trainium is planned to be sold externally by the end of 2027.
Huxiu
Who Exactly Is Eating the AI Dividend: Looking at Profit Distribution Through Financial Report Data
Letter AI reviewed recent financial reports and survey data, pointing out that the AI dividend is unevenly distributed among model companies, upstream suppliers, enterprises, and workers. Anthropic's compute and infrastructure costs account for 55% of revenue, and its minimum purchase commitments with Google, Amazon, and Microsoft total $269.4 billion; OpenAI's 2025 operating loss was $20.92 billion. In a McKinsey survey, 80% of respondents said AI improved efficiency, but only 37% believed it made a positive contribution to EBIT, and only 2% of S&P 500 companies quantitatively disclosed AI's profit contribution.
Wallstreetcn
Amazon Earnings Call: AWS Expected to Grow Over 40% in 2027 and 2028, 2026 Capex Around $220 Billion
Amazon CEO Andy Jassy said on the Q3 earnings call that AWS third-quarter revenue grew 39.3% year over year to $45.98 billion, and is expected to grow over 40% in both 2027 and 2028, becoming a business with annual revenue exceeding one trillion dollars in the next 5 to 10 years. The company maintained its expectation of about $220 billion in cash capital expenditure for 2026, most of which will go to AWS, and expects spending to increase significantly in 2027. On Bedrock, spending by Fortune 500 companies grew nearly 7x year over year and total tokens grew nearly 17x, revenue commitments for Trainium and Graviton grew more than 20x year over year, and Trainium is planned to be sold externally by the end of 2027.
Wallstreetcn
Amazon's stock fell about 7% after its Q3 earnings report, showing AI investment pressure alongside Alphabet
Amazon's total Q3 revenue grew 12% year-over-year to $201.9 billion, below analyst expectations, and its stock fell about 7% after hours following the earnings release. AWS revenue grew 39% year-over-year to $46 billion, accelerating for the sixth consecutive quarter, but online retail growth slowed to 2% and advertising growth slowed to 11%; meanwhile, equipment and property expenditures exceeded $77 billion, and free cash flow over the past 12 months was negative $42.4 billion. This trend echoes Alphabet's single-day plunge of 13% after its search advertising revenue fell short of expectations, as market concerns grow that AI investment is suppressing cash flow and the pace of monetization.
TechCrunch AI
Jassy Says AWS Will Become a Trillion-Dollar Business, with About $220 Billion in Capital Expenditure in 2026
Amazon CEO Andy Jassy reiterated on the quarterly earnings call that AWS is expected to become a business with $1 trillion in annual revenue in the next 5 to 10 years, and he expects growth rates to exceed 40% in both 2027 and 2028. He said cash capital expenditure in 2026 will be about $220 billion, most of it going to AWS, and will increase significantly further in 2027; AWS revenue grew 39% year over year this quarter, with an annualized revenue scale of $184 billion. After the earnings release, Amazon's stock fell about 6% in after-hours trading.
Wallstreetcn
Amazon Q3 Earnings: AWS Revenue Up 39.3%, AI Capital Expenditures Turn Free Cash Flow Negative
Amazon's net sales in Q3 2026 grew 12% year-over-year to $201.94 billion, slightly below expectations, while AWS net sales grew 39.3% year-over-year to $45.98 billion, the highest single-quarter growth rate in nearly five years. Purchases of property and equipment for the quarter reached $77.26 billion, about 1.2 times the year-ago period, and free cash flow swung from an inflow of $14.79 billion in the year-ago period to an outflow of $42.36 billion. The company maintained its full-year 2026 cash capital expenditure guidance of approximately $220 billion unchanged, and the stock fell as much as more than 10% in after-hours trading following the earnings release.
Sina Tech
Amazon's AI spending turns free cash flow negative at $42.4 billion, shares fall after hours
Amazon disclosed that free cash flow for the trailing twelve months ended September 30, 2026 was negative $42.4 billion, compared with positive $14.8 billion in the same period of 2025; the company said this was mainly due to a $94.8 billion increase in purchases of property and equipment related to AI investments. Amazon expects cash capital expenditure of $220 billion for 2026, and AWS Chief Financial Officer John Felton said the order backlog as of the second quarter was close to $500 billion. In the earnings report, the advertising business's year-over-year growth rate fell to 12%, compared with 26% in the previous quarter.
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