Amazon Selloff Seen as Overreaction to Spending -- Market Talk
Dow Jones2026/10/29 22:171817 ET - Amazon.com shares sold off in after-hours trading for the same reason as other AI stocks: Concerns over spending. "The market saw a $77 billion capex quarter, negative free cash flow and a light profit guide, and hit the sell button," tech analyst Luke Lango says. Lango sees the selloff as an overreaction, given the strong growth rates across Amazon's AI business. AWS grew 39% with margins near 40%, and growth is expected to stay at that level for the next two years, Lango notes. Amazon's spending is paying off thanks to cloud growth, as scarce computing supply and soaring demand create opportunity. Shares fall 5%. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
October 29, 2026 18:17 ET (22:17 GMT)
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