WORLDTECHAWS grows 39% and Amazon will spend even more on AI in 2027
What happened
Shares fell as much as 7% in extended trading on Thursday, Reuters reported . Amazon’s free cash flow fell to minus $42.4bn over the 12 months to September.
Spending on AI drove most of the drop, the company said on Thursday. A year earlier it was a positive $14.8bn.
Amazon Andy Jassy says Amazon could have two businesses with $1tn in annual revenue within a decade. The Amazon Q3 earnings also showed its highest operating margin yet, 13.9%. Amazon Web Services is a cloud computing company based in Seattle.
The Amazon Q3 earnings showed revenue up 12% to $201.9bn and operating income up to $28.1bn, from $17.4bn a year earlier.
Its operating margin of 13.9% was the highest Amazon has ever reported. Purchases of property and equipment rose by $94.8bn over the 12 months, mostly for AI, the company said.
Revenue and earnings per share came in below analysts’ forecasts of $202.3bn and $1.96, CNBC reported . AWS grows at its fastest rate in almost five years Revenue at Amazon Web Services rose 39% to $46bn, and its operating income climbed to $17.8bn from $11.4bn.