Amazon.com stock slips as AI spending keeps cash flow in focus

Amazon.com reported accelerating cloud growth and a record operating margin for the third quarter ended September 30, but heavy artificial intelligence investment continued to weigh on cash generation. The latest figures and holiday-quarter outlook were covered by Ad Hoc News.

Amazon.com stock traded at 228.35 euros on Lang & Schwarz at 16:30 CET on Thursday, November 5, 2026, 3.75 percent below the Xetra close of Wednesday, November 4. The quote was also 5.12 percent below the 240.68 euros cited in the latest relevant Ad Hoc News report at 12:52 CET on the same day.

AWS drives the earnings profile

Amazon's third-quarter net sales increased 12 percent year over year to 201.9 billion US dollars. Operating income rose to 28.1 billion US dollars, lifting the operating margin to a company record of 13.9 percent.

Amazon Web Services remained the main growth engine. AWS sales advanced 39 percent to 46.0 billion US dollars, while segment operating income climbed to 17.8 billion US dollars. Chief Executive Andy Jassy said investment in AWS functionality and infrastructure was supporting the business and projected growth above 40 percent in both 2027 and 2028.

AI spending raises the cash hurdle

The investment cycle has created a sharper trade-off for shareholders. Trailing twelve-month operating cash flow rose 29 percent to 168.3 billion US dollars, but free cash flow swung from a 14.8 billion US dollar inflow to a 42.4 billion US dollar outflow.

Amazon attributed the reversal primarily to a 94.8 billion US dollar year-over-year increase in purchases of property and equipment, mainly reflecting artificial intelligence investment. The company continues to expect cash capital expenditures of approximately 220 billion US dollars for 2026.

Holiday quarter sets next test

Amazon expects fourth-quarter net sales of 240.0 billion to 247.0 billion US dollars and operating income of 28.5 billion to 33.5 billion US dollars. Advertising revenue is expected to grow in the high teens, while seasonal retail demand will test whether AWS momentum and consumer activity can offset the infrastructure burden.

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Amazon trades in the context of the US equity market, with the S&P 500 as the relevant broad benchmark.

For further coverage, see More news and analyses on Amazon.com stock.