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Amazon Q3 revenue to grow on AWS strength, but AI investments may pressure profits and cash flow

Company Fundamentals
27 Oct 2026, 21:35 WIB
Seeking Alpha
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Neutral
Amazon Q3 revenue to grow on AWS strength, but AI investments may pressure profits and cash flow

Amazon.com, Inc. is expected to report solid revenue growth in Q3, mainly driven by strong performance in its cloud business, AWS. However, heavy investments in artificial intelligence could weigh on the company's earnings and free cash flow, with net debt likely to rise again. Despite a recent pullback, Amazon's stock trades at a higher forward multiple compared to peers, making its valuation less attractive relative to other AI-focused tech giants. Investors should watch for the earnings report on October 29 for more clarity on growth and profitability.

As of Oct 28, 2026 01:51 WIB, Amazon's stock on Pluang trades at USD 254.35, showing a 2.11% gain over the past day. The company holds a substantial market cap of $2.69 trillion and an enterprise value of $2.79 trillion. Pluang users currently favor buying Amazon shares, with 77% of order activity leaning towards purchases.

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