Alphabet Failed Wall Street’s New AI Test. Amazon Takes It Tonight.

Quick Read

• Amazon’s AWS grew 37% with a 39.4% operating margin last quarter, but trailing free cash flow turned negative as capex hit $54.2B.

• Alphabet dropped 10% premarket after missing EPS by 28% and signaling more 2027 spending; Oracle surged 11% by committing to $30B in free cash flow by FY2029.

• Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Amazon didn’t make the cut. Enter your email to see the names that beat AMZN. The report is free. Enter your email and see if any of your stocks made the cut.

This week Wall Street set a new rule for AI companies: heavy capex is fine as long as you show the payoff. Amazon (NASDAQ:AMZN) reports third-quarter results after the close today. AWS growth measured against capex will decide how the stock responds.

Alphabet Flunked,…