Amazon Falls 7% on Earnings Miss, Negative Cash Flow; Meta and Alphabet Dip, Walmart Rises

Amazon shares fell 7% in premarket trading after the company missed earnings expectations and reported negative free cash flow of $42.4 billion, driven by heavy AI infrastructure spending. Meta fell 2%, Alphabet dipped 1%, while Walmart gained 2%. Amazon posted Q3 EPS of $1.89, below the $1.97 consensus, and revenue of $201.9 billion, missing the $202.25 billion estimate. AWS revenue grew 39% year-over-year, but free cash flow swung from positive $14.8 billion to negative $42.4 billion over 12 months. Management reaffirmed $220 billion in 2026 capital expenditures. Analysts split on the selloff, with TD Cowen calling it excessive and raising targets at Mizuho and UBS, while Citizens cut its target sharply. Gartner warned that $3.5 trillion in AI infrastructure spending could face impairment by 2030, adding context to investor concerns about cash burn.