U.S. Stock Market Movement: Amazon Plunges on October 30—Earnings Miss Expectations, High Capital Expenditures, and Negative Cash Flow

Amazon October 30 Sharp Drop Analysis

Keywords: earnings report below expectations, high capital expenditures, negative cash flow

1. On October 29, Amazon released its third-quarter earnings report: revenue was $201.9 billion, up 12% year-over-year but slightly below expectations; earnings per share were $1.89, below the expected $1.96 and down about 3% year-over-year; fourth-quarter revenue and operating profit guidance midpoints were below expectations.

2. The October 29 earnings report showed capital expenditures of $77.3 billion for the quarter, more than 30% higher than expected; free cash flow over the past 12 months was -$42.4 billion. The company maintained its capital expenditure guidance of around $220 billion for 2026 and expects spending to increase in 2027. The return on AI investment and cash flow pressures are areas of concern.

3. From October 29 to 30, the earnings report showed that online sales rose only 2%, the lowest in three and a half years, and advertising revenue came in below expectations. AWS revenue increased by 39.3% but missed the buy-side expectation of 42%, with profit margin declining. On the same day, Alphabet plunged about 12.6% and Intel dropped 23%, as AI infrastructure stocks were sold off. On the 30th, Nasdaq futures fell about 2%, dragging Amazon’s after-hours and pre-market prices lower along with the sector.

(Disclaimer: This content is generated by AI technology based on publicly available information and is for reference only. It does not constitute investment advice.)