Amazon CEO Andy Jassy Just Made a Wild Prediction. It Could Make the Tech Giant a Big Winner.
Yahoo Finance ·
Like Meta , Microsoft , and Alphabet , Amazon ( AMZN -4.25% ) stock headed lower after its earnings report, down 7% in after-hours trading on Thursday. Skepticism about massive capital expenditures on AI has spread across big tech stocks, and Amazon became the latest victim. The company didn't adjust its forecast of $220 billion in capex for the year, but it did report a $42 billion loss in free cash flow for the previous four quarters, showing the build-out is already costing it. Amazon reported 12% revenue growth to $201.9 billion in the third quarter, slightly below estimates of $202.3 billion. Adjusting for foreign exchange and the shift in Prime Day from Q3 to Q2, revenue would have been up 17%. Bottom-line growth was also strong, with operating income up 61% to $28.1 billion. Equity gains often distort Amazon's earnings per share, so operating income is a better metric to evaluate its profits. Those numbers weren't enough to please investors, but the tech giant did share a longer-term prediction that investors will want to hear.
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