Amazon (AMZN -1.41%) delivered another quarter of strong growth Thursday night, but investors were unimpressed.
The stock tumbled 7% in after-hours trading following the report, and closed the regular session down 1.4%.
Growth on the top and bottom lines was strong, as revenue rose 17% to $201.9 billion after adjusting for foreign exchange and the shift in Prime Day, and operating income jumped 61% to $28.1 billion.
Amazon’s revenue was slightly below the analyst consensus at $202.3 billion, but the biggest reason for the stock’s slide is that investors are skeptical of its massive capital expenditures for AI.
The company plans to spend $220 billion on capital expenditures this year, and its finances are already feeling the weight of that decision.
In just the third quarter, Amazon reported a free cash flow loss of $33.4 billion as it spent $77.3 billion on property and equipment. That may be the largest capex outlay for any company in a single quarter, as well as the biggest FCF…