AWS up 39% still couldn't save Amazon; shares plunged more than 7% after hours: the market is no longer rewarding growth, only returns on spending.
Amazon reported its Q3 results after the market closed on October 29: revenue of $201.94 billion, slightly below the $202.31 billion expected; EPS of $1.89, below the $1.96 expected.
The bright spot was cloud: AWS revenue was $45.98 billion, up 39% year over year and above the $45.29 billion expected.
But the other side was even more striking: capital expenditures for Q3 alone came to $77.3 billion, far above the $58.7 billion expected. The full-year spending plan of $220 billion remains unchanged; the midpoint of Q4 guidance, $243.5 billion, was also slightly below the $244.3 billion expected.
Shares fell 4.2% in regular trading to close at $243.79, on volume of 83.6 million shares, then fell further to around $226 after hours.
I think this is the third repeat of the same playbook this week: after Google and Meta, Amazon has also stumbled over the idea of “spending money to buy growth.”
I’m watching, not trying to catch a falling knife, and I’m not betting on a dip-buying opportunity at tonight’s open.
A move back above $254.60 (the closing price before earnings) would suggest the sell-off is easing; a drop below around $226 (the after-hours low) would mean the downside isn’t over yet.
What do you think we should focus on first tonight: AWS growth or the rate of cash burn?
$AMZN $GOOGL $META
#美股财报 #Amazon
Amazon reported its Q3 results after the market closed on October 29: revenue of $201.94 billion, slightly below the $202.31 billion expected; EPS of $1.89, below the $1.96 expected.
The bright spot was cloud: AWS revenue was $45.98 billion, up 39% year over year and above the $45.29 billion expected.
But the other side was even more striking: capital expenditures for Q3 alone came to $77.3 billion, far above the $58.7 billion expected. The full-year spending plan of $220 billion remains unchanged; the midpoint of Q4 guidance, $243.5 billion, was also slightly below the $244.3 billion expected.
Shares fell 4.2% in regular trading to close at $243.79, on volume of 83.6 million shares, then fell further to around $226 after hours.
I think this is the third repeat of the same playbook this week: after Google and Meta, Amazon has also stumbled over the idea of “spending money to buy growth.”
I’m watching, not trying to catch a falling knife, and I’m not betting on a dip-buying opportunity at tonight’s open.
A move back above $254.60 (the closing price before earnings) would suggest the sell-off is easing; a drop below around $226 (the after-hours low) would mean the downside isn’t over yet.
What do you think we should focus on first tonight: AWS growth or the rate of cash burn?
$AMZN $GOOGL $META
#美股财报 #Amazon
