Amazon's record AI spending looks backed by AWS demand, despite pressure on near-term profit. AWS grew 39% to $46bn, and CEO Andy Jassy projects growth above 40% in both 2027 and 2028. Quarterly capex reached $77.3bn, almost $20bn above expectations; the Q4 profit guide missed and retail ads softened. AWS acceleration makes the drop worth buying. Overweight; $370 target. x.com  x.com 

Amazon looks cheap against its growth and cash-generating businesses. At about 3.5 times trailing revenue and a roughly 20 trailing P/E, it has $776B in sales, AWS growing 37% year over year, plus advertising and marketplace cash engines. x.com 

Amazon's negative free cash flow and far-off AWS guidance add to its investment risk. Free cash flow is -$42 billion. True_yes_man describes Jassy extrapolating fourth-quarter AWS revenue at 40% growth for five years. That guide cannot be taken seriously; it resembles the Tesla and Nvidia playbook of projecting years ahead to support the market into the midterms, then recalibrating later. x.com  x.com 

Amazon's AWS growth still drives its valuation, making the post-earnings decline look temporary despite misses elsewhere. AWS grew 39% to $46 billion, above the $45.4 billion expected; Jassy sees growth above 40% in both 2027 and 2028. Earnings, advertising and Q4 sales guidance missed expectations, while trailing free cash flow was negative $42.4 billion. x.com  x.com 

Amazon's accelerating AWS growth at high margins shows the strength of its moat, but returns on heavy capex remain unproven. AWS grew 39% to $46B, its fastest growth in nearly five years, at a 38.7% operating margin; Amazon posted record operating income. Online stores grew 2%, while ads grew 11%, down from 26% last quarter. Trailing free cash flow fell to -$42.4B as net capex reached $210.7B. Returns on about $220B of planned 2026 capex remain the open question, with free cash flow the test. … Show more

Amazon's unusual long-term AWS guidance looks desperate and leaves its stock looking dead. @P_Remarks says Amazon normally avoids long-term guidance and speculates that its projection of over 40% AWS revenue growth in both 2027 and 2028 was a Hail Mary to offset a quarter weak relative to expectations. x.com 

Amazon's AWS growth remains strong despite slight earnings misses. AWS revenue rose 39% year over year in Q3. Increased 2027 capex could still weigh on the shares in the short term, even if demand continues to rise. x.com  x.com  x.com  x.com 

Amazon's faster AWS growth and broader profit support its investment case, but returns on infrastructure spending remain uncertain. AWS supplied about 60% of the $10.7B rise in operating income and North American retail about 37%. Trailing net capex of $210.7B exceeded $168.3B of operating cash flow. Much of the spend is on chips and servers with lives well under a decade; the test is how quickly capacity becomes AWS revenue. x.com  x.com  x.com 

Amazon's hundreds of billions in AWS GPU spending are generating billions in additional sales without the operating-margin payoff expected from that investment, worsening its credit risk. The attached AWS chart shows quarterly revenue rising from $23.1 billion in Q3 2023 to $42.2 billion in Q2 2026, alongside operating income rising from $7 billion to $16.6 billion; the concern is the return on the GPU spending. x.com 

Fast peer-cloud growth makes a bullish Amazon earnings view hard to resist. Azure grew 48% and Google Cloud 103%; the forecast is for 42%+ AWS growth. AWS is expected to grow over 40% annually over the next two years, so selling Amazon here risks missing that growth. x.com  x.com