Amazon.com, Inc.

(NASDAQ Global Select)
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Somewhat Bearish -35

Stock Market Today, Oct. 30: Amazon Misses Revenue and Earnings Expectations

Analyst downgrade Earnings report AI-generated analysis

πŸ“‰ Amazon.com closed down 1.41% at $240.35 after Q3 revenue of $201.9 billion and EPS of $1.89 missed analyst expectations.

☁️ AWS division delivered strong growth with 39% annual net sales growth, well ahead of the prior year's 20% increase.

πŸ’Έ Free cash flow turned negative with a $42.4 billion outflow over the trailing 12 months, contrasting with historical positive generation.

πŸ—οΈ Amazon maintained its $220 billion capital expenditures goal for 2026 despite sector concerns over high spending and interest rates.

πŸ’° The company holds $114 billion in liquidity to support its continued investment strategy and operational expansion.

πŸ“ˆ Trading volume surged to 103.1M shares, approximately 153% above the three-month average, indicating heightened investor activity.

Bullish Signals
  • AWS returned 39% annual net sales growth, significantly exceeding the 20% yearly increase recorded in the year-ago quarter.
  • The company maintains a robust liquidity position of approximately $114 billion to fund its strategic investments and operations.
Risk Factors
  • Q3 revenue of $201.9 billion and earnings per share of $1.89 both missed consensus analyst expectations.
  • Free cash flow turned negative with a $42.4 billion outflow over the trailing 12 months, marking a significant shift from historical performance.
Full Analysis
Amazon.com (NASDAQ:AMZN) closed at $240.35, down 1.41%, after reporting Q3 results that missed both revenue and earnings expectations. The company reported net sales of $201.9 billion, a 12% year-over-year increase, but this fell short of analyst consensus. Earnings per share were $1.89, representing an earnings dip compared to forecasts, which prompted analysts to trim price targets during the trading session. Despite the miss in top-line growth and EPS, Amazon's cloud division, AWS, showed robust performance with 39% annual net sales growth, significantly outpacing the 20% increase seen in the year-ago quarter. However, the company's free cash flow turned negative, recording an outflow of $42.4 billion over the trailing 12 months, a stark contrast to its historical generation of tens of billions in annual free cash flow. Amazon reaffirmed its commitment to a $220 billion capital expenditures goal for 2026, maintaining high investment levels despite rising interest rates and sector-wide concerns regarding heavy spending. The company currently holds approximately $114 billion in liquidity, providing a substantial buffer to support these investments. Following the initial sell-off, the stock recovered most of its losses after opening 5% below the previous day's closing price.