American billionaire Jeff Bezos’s Amazon shares fell more than 11% in after-hours trading, after the company revealed a surge in spending on artificial intelligence that pushed its free cash flow deep into negative territory.
The stock dropped to $215.88 shortly after the results were released on Thursday, down 11.4% from its regular-session close of $243.79, StockTitan reported.
The selloff came despite strong growth at Amazon Web Services. Sales at the cloud unit rose 39% to $46 billion in the third quarter, its fastest growth in nearly five years, and its operating income climbed to $17.8 billion from $11.4 billion.
Amazon’s overall net sales rose 12% to $201.9 billion, within the company’s forecast range. Operating income jumped to $28.1 billion from $17.4 billion, beating its own guidance, and its operating margin of 13.9% was the highest in its history. Sales in North America rose 6% to $112.9 billion, while international sales grew 5% to $43.1 billion.
Spending…
