Amazon (AMZN) Stock After Q3 Earnings: Buy the Dip, Sell, or Hold?

Amazon AMZN) stock is under pressure following the e-commerce and cloud computing giant’s third-quarter earnings release on Thursday evening, which fell short of Wall Street’s top-and bottom-line expectations.

Like Alphabet GOOGL), Amazon disappointed investors as concerns about massive artificial intelligence spending overshadowed otherwise encouraging growth. However, AMZN’s post-earnings selloff has been less severe than Alphabet’s, with Amazon shares falling roughly 7% in Friday’s premarket trading.

Still, Amazon’s accelerating AWS growth, expanding AI opportunities, and improving operating profitability raise the question of whether the pullback presents a buying opportunity.

Amazon’s Q3 Results: Earnings Miss, but Record Margins

Amazon reported Q3 earnings of $1.89 per share, missing the Zacks Consensus Estimate of $2.01 and declining from EPS of $1.95 in the year-ago quarter.

Revenue climbed 12% year over year to…