Amazon shares fall as heavy AI spending turns free cash flow negative
Amazon shares dropped 6.5% in after-hours trading Thursday after the company reported negative free cash flow of $42.4 billion over twelve months.
By GennnAi··1 min read
The twelve months ended September 30 compare with positive $14.8 billion a year earlier. Amazon blamed a $94.8 billion rise in property and equipment purchases tied to AI. It expects $220 billion in cash capital expenditures in 2026 and more in 2027. Revenue reached $201.9 billion, up 12% but below S&P Capital IQ estimates, while AWS backlog grew to $578 billion. Alphabet shares also fell after earnings.
Source: Yahoo Finance, published on October 30, 2026.