AMZN Stock Drops 7% As AI Spending Soars Past Expectations, While E-Commerce Growth Cools

• Amazon poured more than $77 billion into property and equipment during the third quarter to aggressively build out data centers.

• While Amazon Web Services (AWS) accelerated for its sixth consecutive quarter, fueled by AI giants like OpenAI and Anthropic, core online retail sales crawled by just 2% to $68.5 billion.

• Amazon expects fourth-quarter revenue between $240 billion and $247 billion, slightly lower than the average $247.5 billion analysts polled by Fiscal.ai expected.

Amazon.com Inc.(AMZN) share price dropped about 7% after-hours on Thursday after the e-commerce giant reported third-quarter capital expenditures that heavily outpaced Wall Street projections, underscoring investor anxiety that the AI buildout might not transform into adequate revenue.

The company stated that it spent upwards of $77 billion on property and equipment over the quarter ending September, primarily channeled into constructing new data centers and…