Amazon slides on light Q4 sales estimates, high cash burn
It has burned roughly US$20 billion above estimates on a trailing 12-month basis in the September quarter
Amazon reported a disappointing third quarter on Thursday, with shares falling nearly 7% in extended trading. The Seattle-based company forecast holiday-quarter revenue significantly below Wall Street estimates. Investors were unhappy, driving shares down 4.3% in regular trading to $243.79. The firm expects revenue between $240 billion and $247 billion in Q4, while analysts anticipate $244.51 billion.
Amazon burned $42.4 billion over the trailing 12-month period, driven by $77.26 billion in capital expenditure, which exceeded estimates by $20 billion. CEO Andy Jassy attributed the weak performance to a heavy focus on AI development, with AWS forecasting $220 billion in capital expenditures for 2026. He reassured investors that the company's strategy was working and expected capital spending to increase further in 2027.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Amazon slides on light Q4 sales estimates, high cash burn straitstimes.com
