Amazon, Google, Intel shares fall on weak earnings and AI spending concerns

Amazon shares plunged over 7% in after-hours trading Thursday after the company reported third-quarter earnings that missed analyst expectations on both profit and total revenue, intensifying investor concerns about heavy AI spending. Amazon posted $201.9 billion in revenue and $20.7 billion in profit, falling short of FactSet estimates of $202.2 billion and $21.5 billion, respectively. Advertising revenue also missed at $19.6 billion versus $20.8 billion expected, while the company reaffirmed plans to spend $220 billion on capital expenditures this year, mainly on AI investments. CEO Andy Jassy highlighted growth areas beyond e-commerce, including Whole Foods, health care, and its Leo satellite division, noting potential for two trillion-dollar revenue businesses within a decade. Amazon's AWS remains the global cloud leader, with AI cloud and chips businesses each exceeding $25 billion annual run rates, and demand for its Trainium chips is strong ahead of broader availability next year.