Amazon reported its third-quarter 2026 results after the closing bell on Thursday, and the numbers told two very different stories. On one side, the company’s cloud business kept roaring: Amazon Web Services sales are projected to grow 38%, showing that demand for cloud and AI infrastructure remains strong. On the other, the sheer scale of Amazon’s spending alarmed investors.
The headline figure spooking the market was capital expenditure. Amazon spent more than $77 billion on property and equipment during the third quarter alone, far above what analysts had estimated. The company also signaled that spending will climb again next year, adding to an already heavy outlay tied to data centers, chips, and AI infrastructure.
CEO Andy Jassy sought to reassure investors by pointing to the long game. He said Amazon Web Services can eventually reach $1 trillion in annual revenue, arguing that today’s massive buildout will pay for itself as AI adoption accelerates. It is a bet the company has made repeatedly — spend now, scale later.
The market was not convinced, at least not on Friday. Amazon shares fell roughly 7% in premarket trading on October 30, wiping out tens of billions in market value. Reuters reported that Amazon and Intel together were poised to lose about $300 billion in combined market value if the premarket losses held.
The broader worry is not Amazon-specific. Across Big Tech, investors have begun questioning whether the record sums being poured into artificial intelligence will deliver returns fast enough to justify the spending. Until that question is answered, even strong results may not be enough to calm the market.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.