Updated 30 October 2026. Amazon (AMZN) traded at $226.55 in premarket trading at 9:09 am ET on Friday, down 7.07 percent from Thursday’s $243.79 close (StockAnalysis), after a third quarter in which AWS grew 39.3 percent to $46.0 billion but trailing free cash flow fell to minus $42.4 billion and the fourth-quarter guide came in below consensus. Verdict: the cloud business delivered, but the market is pricing the cash bill for a roughly $220 billion capex year and a soft holiday-quarter outlook. Reference levels: $205 below, $255 above.
Key facts
- Price: AMZN closed at $243.79 on 29 October, down $10.81 or 4.25 percent from Wednesday’s $254.60, in a $241.24-$249.14 range, then traded at $226.55 premarket on Friday at 9:09 am ET, down 7.07 percent (StockAnalysis). TradingKey recorded $226.48, down 7.1 percent, earlier in the premarket session.
- Revenue: net sales of $201.9 billion, up 12 percent, just short of a consensus of about $202.2 billion (TradingKey).
- Earnings: diluted EPS of $1.89 against about $1.97 expected and $1.95 a year earlier. Amazon’s release attributes the year-on-year decline in net income mainly to $9.5 billion of pre-tax gains on its Anthropic investment in the third quarter of 2025.
- Operating income: $28.1 billion, up about 61 percent, at a record 13.9 percent margin (TradingKey), roughly $2 billion above consensus (investingLive).
- AWS: revenue of $46.0 billion, up 39.3 percent, the fastest growth in nearly five years, with operating income of $17.8 billion, up 56 percent (TradingKey). Advertising revenue rose 12 percent to $19.6 billion.
- Cash: trailing 12-month free cash flow was minus $42.4 billion against plus $14.8 billion a year earlier; operating cash flow rose 29 percent to $168.3 billion, but net purchases of property and equipment rose 82 percent to $210.7 billion (TradingKey).
- Guidance: fourth-quarter net sales of $240-$247 billion against a consensus near $245 billion, and operating income of $28.5-$33.5 billion against about $33 billion (investingLive). Full-year 2026 cash capex is expected at about $220 billion, with 2027 significantly higher (TradingKey).
Why a record-margin quarter is down 7 percent
The operating story was the best Amazon has told in years. AWS accelerated to 39.3 percent growth, group operating income beat by about $2 billion, and the 13.9 percent margin is the highest the company has reported. Chief executive Andy Jassy said he expects AWS growth above 40 percent in both 2027 and 2028 (TradingKey).
The problem is the cash and the outlook. Amazon’s free cash flow over the last 12 months swung by about $57 billion into negative territory because spending on data centres, chips and power grew far faster than operating cash flow. Management reaffirmed roughly $220 billion of capex for 2026 and signalled more in 2027. The fourth-quarter guide added a second reason to sell: the $243.5 billion revenue midpoint sits below consensus, and the $31 billion operating-income midpoint is about $2 billion below the roughly $33 billion analysts wanted.
The timing made it worse. The stock had already fallen 4.25 percent on Thursday as Alphabet’s capex-heavy quarter dragged the AI trade lower, so the two-session drop from Wednesday’s $254.60 close to Friday’s premarket quote is about 11 percent. The same premarket session had Intel down about 25 percent and Sandisk down more than 8 percent (TradingKey), so Amazon is trading inside a broader reset of AI spending expectations rather than on its own numbers alone.
What the analysts are saying
The Street has not abandoned the stock. StockAnalysis lists a Strong Buy consensus from 60 analysts and an average 12-month target of $332.41, about 36 percent above Thursday’s close. Telsey Advisory reiterated Outperform with a $335 target (Investing.com). The CNBC Investing Club cut its own target to $280 from $300 after what it called a rough quarter. The gap between those targets and the premarket price is the market’s verdict on how long the capex payback will take.
Our results-night Amazon page set out the first read of the numbers on Thursday evening. For the other half of this week’s hyperscaler picture, see our Alphabet page for Friday; for the chip read-through, our Intel results coverage.
Amazon stock: bull, base and bear
| Scenario | AMZN | What has to happen | Anchor |
|---|---|---|---|
| Bear | $205 | The premarket drop extends into the session, more analysts cut targets on free cash flow and the soft fourth-quarter guide, and the AI-capex selloff spreads. | About 9.5 percent below the $226.55 premarket quote and $9 above the $196.00 52-week low (StockAnalysis). |
| Base | $220-$244 | The stock holds most of the drop while the market weighs 39 percent AWS growth against negative free cash flow. | Just below the premarket quote up to Thursday’s $243.79 close. |
| Bull | $255 | Buyers treat the cash drain as the cost of AWS growth Jassy says will exceed 40 percent in 2027 and 2028, and close the two-day gap. | Wednesday’s $254.60 close, about 12.6 percent above the premarket quote and well below the $332.41 average analyst target. |
The bear case sits below the latest quote. These are reference levels measured from the verified premarket price, not forecasts.
What to watch
- The open and the first hour: whether the roughly 7 percent premarket drop holds once regular trading starts.
- $243.79: Thursday’s close; a recovery there would mean the results-night drop was fully bought.
- Analyst target revisions: how many firms follow the CNBC Investing Club’s cut, and whether the $332.41 average moves.
- Capex detail for 2027: any figure behind “significantly higher” will reset the free-cash-flow math.
- The holiday quarter: the $240-$247 billion guide is the bar the next report will be judged against.
Quick take: Amazon delivered its fastest AWS growth in nearly five years and a record 13.9 percent margin, but trailing free cash flow of minus $42.4 billion and a fourth-quarter guide below consensus sent the stock to $226.55 premarket, down 7.07 percent. Expect $220-$244 while the market weighs growth against cash; $205 needs the AI-capex selloff to deepen, and $255 needs buyers to close the two-day gap.
FAQ
What is Amazon’s stock price today?
AMZN traded at $226.55 in premarket trading at 9:09 am ET on Friday 30 October 2026, down 7.07 percent from Thursday’s $243.79 close (StockAnalysis). Check a live quote for the regular session.
Why is Amazon stock down after earnings?
EPS of $1.89 missed the roughly $1.97 consensus, trailing free cash flow fell to minus $42.4 billion on about $220 billion of 2026 capex, and the fourth-quarter revenue and operating-income guidance came in below analyst expectations.
How fast did AWS grow in the third quarter?
AWS revenue rose 39.3 percent to $46.0 billion, its fastest growth in nearly five years, with operating income of $17.8 billion, up 56 percent (TradingKey).
What is Amazon’s guidance for the fourth quarter?
Net sales of $240-$247 billion and operating income of $28.5-$33.5 billion. The midpoints, about $243.5 billion and $31 billion, are below consensus of near $245 billion and $33 billion (investingLive).
How much is Amazon spending on capex?
Amazon expects about $220 billion of cash capex in 2026 and said spending in 2027 will be significantly higher. Net purchases of property and equipment over the last 12 months were $210.7 billion.
What is the Amazon analyst price target?
The average 12-month target is $332.41 from 60 analysts with a Strong Buy consensus, according to StockAnalysis. Telsey Advisory holds $335, while the CNBC Investing Club cut its target to $280 from $300.
Sources: Amazon third quarter 2026 results release (29 October 2026); StockAnalysis (29 October close and range, 30 October premarket quote, 52-week range, analyst consensus and average target); TradingKey (premarket move, segment results, free cash flow, capex outlook, Jassy comments, US premarket movers, 30 October); investingLive (fourth-quarter guidance against consensus, operating-income beat); Investing.com (Telsey Advisory); CNBC Investing Club (price target change).
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Stock prices are volatile. Do your own research and consult a licensed financial adviser before making investment decisions.
