Amazon Shares Dip 2% After Q3 Miss, Analysts See Buying Opportunity

Amazon shares fell 2% on Friday after third-quarter results disappointed investors, though most analysts view the decline as a buying opportunity due to long-term growth potential in AWS and AI. Amazon reported earnings of $1.89 per share, missing the $1.96 estimate, and revenue of $201.94 billion, below the $202.31 billion consensus. AWS revenue hit $45.98 billion, roughly in line, while capital expenditures reached $75.9 billion, contributing to a $42.4 billion trailing free cash flow outflow. Analysts remain bullish, citing AWS growth acceleration to 39% and a $578 billion backlog. Morgan Stanley cut its price target to $335 but kept an Overweight rating, while UBS raised its target to $352, noting management expects AWS growth above 40% through fiscal 2028.