Amazon Stock Takes a Beating, but Munster Sees AI Powerhouse, Jim Cramer Calls Earnings ‘Very, Very Good’
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Amazon Stock Takes a Beating, but Munster Sees AI Powerhouse, Jim Cramer Calls Earnings ‘Very, Very Good’ Ananya Gairola Thu, October 29, 2026 at 11:18 PM EDT 4 min read AMZN -4.25% On Thursday, Amazon.com, Inc. (NASDAQ: AMZN ) drew sharply different reactions after its third-quarter earnings report , with analysts highlighting booming AI demand and AWS growth. Amazon shares fell 4.25% to close at $243.79 during Thursday's regular session and dropped another 7.30% to $225.99 in after-hours trading, according to Benzinga Pro. Shay Boloor , chief market strategist at Futurum Equities , highlighted CEO Andy Jassy's comments that Amazon is installing an AI accelerator roughly every 14 seconds, with customers absorbing computing capacity almost as quickly as AWS brings it online. "And somehow we're still debating whether Amazon is spending too much on AI," he wrote on X . One of the craziest lines from $AMZN earnings was Andy Jassy saying "we're installing an AI accelerator about every 14 seconds" with customers taking up capacity almost as fast as AWS brings it online. And somehow we're still debating whether Amazon is spending too much on AI. — Shay Boloor (@StockSavvyShay) October 30, 2026 In a separate post, he pointed to Amazon's deployment of more than 1 million warehouse robots and its plans to automate the final stretch of deliveries. He argued that even modest reductions in delivery labor costs could significantly improve retail margins at Amazon's scale. $AMZN CEO Andy Jassy says "we've over a million robots now in our fulfillment network" and is now looking to automate the final 100 yards of deliveries. And at that scale even small reductions in labor costs per delivery could have a massive impact on retail margins. pic.twitter.com/zae1qFyoYg — Shay Boloor (@StockSavvyShay) October 29, 2026 Read Also: Amazon Gets Warrant to Buy $521.4 Million of 3M Stock in Expanded Data Center Partnership: MMM Rises Over 5% After Hours Futurum Group CEO Daniel Newman highlighted AWS' growth of more than 39%, its fastest pace in five years. However, he cautioned that the strength in AI and cloud computing was accompanied by weakness elsewhere in Amazon's business. "AI is full steam but the business around it is softening," Newman said. $AMZN AWS fastest growth in 5 years at 39+%. 💪🏻 Amazon follows Google trend with some weakness in other parts of the business. So AI is full steam but the business around it is softening. 🤓 — Daniel Newman (@danielnewmanUV) October 29, 2026 CNBC's Jim Cramer also offered a positive assessment, writing that despite a difficult trading session, "Amazon and SBUX were very, very good." You don't need me to tell you that today was brutal but Amazon and SBUX were very very good… — Jim Cramer (@jimcramer) October 29, 2026 Deepwater Asset Management managing partner Gene Munster said Amazon's management appeared intent on positioning the company as an AI data center and semiconductor powerhouse rather than primarily a retailer. He highlighted management's projection of more than 40% AWS revenue growth in both 2027 and 2028, alongside Jassy's expectation that AWS could become a trillion-dollar business within five to 10 years. Munster said Amazon was signaling that AWS could become "much, much bigger" than Wall Street currently anticipates, noting that analysts project $306 billion in AWS revenue in 2028. "From the call, it's clear $AMZN management wants the Street to think of the company as a AI data center and chips company. Forget retail," Munster said. From the call, it's clear $AMZN management wants the Street to think of the company as a AI data center and chips company. Forget retail. That been the consistent message on the call, underscored by them doing the unthinkable: giving two-year AWS revenue growth guidance of 40%+… — Gene Munster (@munster_gene) October 29, 2026 Amazon reported third-quarter revenue of $201.94 billion, missing analysts' consensus estimate of $202.31 billion. Earnings came in at $1.89 per share, below expectations of $1.97 per share. For the fourth quarter, Amazon projected revenue of $240 billion to $247 billion, compared with Wall Street estimates of $244.51 billion. According to Benzinga Edge Stock Rankings , AMZN has weak short-term price trends but positive medium- and long-term trends, alongside a moderate value score. Disclaimer : This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Amazon CEO Andy Jassy Says AI Inference Is Still 10 Times Too Expensive, Claims Amazon Chips Offer Answer UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily , plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: AMAZON.COM (AMZN): Free Stock Analysis Report This article Amazon Stock Takes a Beating, but Munster Sees AI Powerhouse, Jim Cramer Calls Earnings 'Very, Very Good' originally appeared on Benzinga.com
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