Amazon (NASDAQ:AMZN) shares declined 7.5% in premarket trading after the technology and e-commerce group reported third-quarter earnings and revenue below Wall Street expectations, while its holiday-quarter sales outlook failed to provide sufficient reassurance to investors.
The results highlighted growing concerns about the financial impact of Amazon’s substantial investments in artificial intelligence infrastructure, despite strong revenue growth at its Amazon Web Services (AWS) cloud computing division.
Amazon reported third-quarter 2026 adjusted earnings of $1.89 per share on revenue of $201.94 billion. Analysts had expected earnings of $1.96 per share and revenue of $202.10 billion.
The earnings disappointment came as investors continued to scrutinise the costs associated with expanding data centres, computing capacity and other infrastructure required to support AI services.
Amazon Reports Negative Free Cash Flow of $42.4…
https://finance.yahoo.com/technology/ai/articles/amazon-shares-fall-7-5-102236910.html
