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Amazon's Q3 earnings face scrutiny over rising AI costs and economic pressures ahead of holiday season.

Company Fundamentals
22 Oct 2026
Seeking Alpha
View Source
Bearish
Amazon's Q3 earnings face scrutiny over rising AI costs and economic pressures ahead of holiday season.

Amazon.com, Inc. is set to release its Q3 earnings on October 29 amid growing investor concerns about its increasing spending on AI infrastructure and the visibility of returns from these investments. While Amazon Web Services (AWS) continues to show strong growth and margin improvements, the company’s overall free cash flow remains negative, raising questions about capital efficiency. Additionally, economic challenges such as inflation, interest rate hikes, and rising oil prices pose risks to Amazon's core commerce business and cost structure, especially as the crucial holiday shopping season approaches. Investors will closely watch Amazon's ability to manage operating leverage and sustain growth in its core segments to ensure a positive return on its AI investments.

Amazon shares are trading at USD 251.65, down 4.09% on Pluang as of October 22, 2026, 22:31 WIB, reflecting cautious investor sentiment ahead of its Q3 earnings release. The stock's market cap stands at $2.83 trillion with a 52-week range between $198.79 and $284.02. Pluang data shows a nearly balanced order activity with 54% selling and 46% buying, indicating mixed views on Amazon's near-term prospects amid its AI spending and economic challenges.

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