Amazon Cloud Growth Drives AI Demand Despite Earnings Miss

seekingalpha.com —

Amazon.com reported weaker-than-expected third-quarter earnings, causing a 7% stock decline, despite accelerating cloud growth and strong AI-driven demand for its products and services. The company's cloud segment posted 39% year-over-year revenue growth, with operating income on pace for at least $70 billion on a runrate basis, outpacing e-commerce profitability. AMZN also confirmed $220 billion in investment spending and reported negative free cash flow. Analysts view the shares as attractively valued at 23.3x forward earnings, citing global cloud leadership and potential for P/E multiple expansion, though e-commerce growth lags behind the higher-margin cloud services shift.


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