Amazon shares fell more than 7% in extended trading Thursday after the company reported third-quarter earnings and revenue that fell short of Wall Street's expectations, CNBC reported.
Amazon posted negative free cash flow for the second straight quarter. The company recorded a $42.4 billion outflow for the trailing twelve months, up 386% from a year earlier. In the prior quarter, negative free cash flow was $7.6 billion. Amazon said the shortfall was primarily due to higher purchases of property and equipment tied to AI investments.
Amazon held its 2026 capital expenditure forecast at $220 billion. CEO Andy Jassy told investors the company expects to "spend meaningfully more in 2027" and has a "clear line of sight to attractive financial returns." CNBC noted that Microsoft lowered its capex forecast for the year to $170 billion from $175 billion earlier this week, and Alphabet kept its range at $195 billion to $205 billion.
Amazon Web Services was the strongest unit. Cloud sales rose 39% from a year earlier to