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Amazon's $1B data center push strains cash flow despite AWS growth, stock slips 8% from peak.

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06 Oct 2026, 19:45 WIB
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Amazon's $1B data center push strains cash flow despite AWS growth, stock slips 8% from peak.

Amazon is investing $200 billion this year to expand its cloud infrastructure, including a $1 billion 'Built Together' data center initiative. While AWS revenue grew 36.7% with a strong backlog, Amazon's free cash flow turned negative due to high capital spending, and its stock has dropped 8% from its post-earnings peak. The company faces pressure from rising costs and delayed returns on data center investments, with future profits depending on operating income and AWS margins holding steady. Investors are watching closely to see if the new data centers will generate expected cash flow as planned.

Amazon's stock trades at USD 255.43 on Pluang as of Oct 07, 2026 00:02 WIB, showing a 1.60% gain in the last day. The company holds a market cap of $2.71 trillion, reflecting its massive scale despite recent cash flow challenges. Pluang investors currently favor buying, with 61% of order activity leaning that way, indicating confidence amid the ongoing data center expansion.

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