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AWS revenue jumps 36.7% as Amazon plans $220B capex, boosting future growth despite near-term cash flow pressure

Market News
05 Oct 2026
Seeking Alpha
View Source
Bullish
AWS revenue jumps 36.7% as Amazon plans $220B capex, boosting future growth despite near-term cash flow pressure

Amazon's AWS revenue grew 36.7%, supported by a $496 billion backlog signaling strong future demand for cloud and AI services. The company plans approximately $220 billion in capital expenditures by 2026, which may pressure near-term cash flow despite rapidly increasing operating income. Advertising revenue rose 26% to $19.8 billion, and North American retail margins improved to 7.9%, reflecting better commerce economics. Amazon's stock trades at 30.3 times next year's earnings, expected to fall to 18.9 times in three years as earnings growth justifies the valuation premium.

Amazon's stock price stands at USD 251.28 on Pluang as of Oct 05, 2026 19:01 WIB, showing a slight 0.10% decrease in one day. Despite the company's ambitious $220 billion capital expenditure plan highlighted in the news, the market values Amazon with a hefty $2.71 trillion market cap and an enterprise value of $2.81 trillion. Trading near its 52-week high of $284.02, Amazon remains a major player in the consumer cyclical sector with a typical hold time of 127 days on Pluang.

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