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Amazon's cloud growth accelerates despite weak Q3 earnings and 7% stock drop

Company Fundamentals
30 Oct 2026, 15:26 WIB
Seeking Alpha
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Neutral
Amazon's cloud growth accelerates despite weak Q3 earnings and 7% stock drop

Amazon reported weaker-than-expected earnings for Q3 but showed strong cloud revenue growth of 39% year-over-year, driven by AI demand. Its cloud segment is on track for at least $70 billion in operating income, surpassing e-commerce profitability. Despite negative free cash flow and ongoing $220 billion investment spending, Amazon's leadership in cloud services supports its attractive valuation at 23.3x forward earnings and potential for future growth. The shift to higher-margin cloud business strengthens Amazon's long-term earnings outlook despite slower e-commerce growth.

Amazon trades at USD 226.99 on Pluang as of Oct 30, 2026 19:21 WIB, down 6.89% in one day. Its market cap stands at $2.64 trillion with a 52-week range between $198.79 and $284.02. Pluang investors hold Amazon for an average of 128 days, showing steady interest despite recent price drops.

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