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Amazon's Q3 selloff masks strong AI-driven profit growth and robust retail income.

Company Fundamentals
30 Oct 2026, 01:40 WIB
Seeking Alpha
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Bullish
Amazon's Q3 selloff masks strong AI-driven profit growth and robust retail income.

Amazon's stock dropped over 5% after Q3 earnings due to concerns about its $220 billion AI investments and negative free cash flow. However, AWS revenue grew 39% year-over-year and operating income jumped 55%, showing AI investments are boosting profits. North American retail operating income also rose 82%, highlighting strong earnings beyond cloud services. Despite near-term cash flow worries, Amazon's expanding profitability supports a Strong Buy rating with a $290 price target, suggesting 27% upside potential.

Amazon shares trade at USD 226.75 on Pluang as of Oct 30, 2026 05:51 WIB, down 10.94% in one day. The stock's 52-week high is USD 284.02, showing recent weakness. Pluang order activity favors buying at 60%, indicating investor interest despite the price drop.

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