Amazon stock (AMZN) fell 2% on Friday after the company’s third-quarter results disappointed investors.
However, most analysts remain bullish on the shares, pointing to the longer-term growth potential of Amazon Web Services (AWS) and the company’s expanding artificial intelligence business.
Amazon reported earnings of $1.89 per share, below the $1.96 expected by analysts polled by LSEG. Revenue came in at $201.94 billion, missing the consensus estimate of $202.31 billion.
AWS revenue was approximately $45.98 billion, broadly in line with expectations.
The company also reported a trailing 12-month free cash flow outflow of $42.4 billion, highlighting the capital requirements of its AI infrastructure expansion.
Amazon’s capital expenditure reached $75.9 billion in the third quarter, as it continued investing in data centres and AI-related capacity.
The results triggered a sharp reaction in the stock, with shares falling nearly 7% in premarket trading before opening lower on Friday.
