Here’s the Amazon Support Level We’re Watching After Selloff

As the market opens Friday, shares of Amazon (AMZN) are following the same path taken by Meta (META) and Alphabet (GOOGL) following their quarterly results, and by that we mean lower. Similar to Google’s results, despite showing substantial growth and visibility into 2029 at AWS, the key driver of profits for Amazon, free cash flow levels and another leg up in capex spending next year are weighing on the shares. But that focus overshadows what was arguably the strongest AWS report in years. 

AWS growth accelerated for the sixth straight quarter, its backlog grew triple digits to $578 billion, and Andy Jassy now expects AWS to grow north of 40% in both 2027 and 2028 on the way to becoming a $1 trillion revenue business in the next five to 10 years.  We’re also seeing record operating margins at the company level and continued margin expansion in retail. 

We continue to see the funding of this build-out as the overhang near term, but we are also seeing SpaceX (SPCX),…