Street View: Amazon's mounting AI spend puts spotlight on cloud growth

Amazon.com

30/10/2026 10:55

   ** Amazon.com AMZN.O on Thursday reported significant cash burn in Q3, and signaled even higher capital spending next year on top of already elevated 2026 levels
** Shares down 6.7% to $227.42 premarket
     
CASH BURN AN OVERHANG
** RBC Capital Markets ("outperform," PT: $330) says AWS (Amazon Web Services) acceleration and outperformance is the requirement from here, given the current generally unfavorable sentiment around AI ROIC and cost of capital 
** Evercore ISI ("outperform," PT: $355) says co's view that AWS can grow north of 40% in both 2027 and 2028 reinforces a multiyear demand opportunity for generation and electrical infrastructure "whose sheer scale is difficult to overstate"
** Barclays ("overweight," PT: $365) says cash burn remains an overhang on the story, along with all the hyperscalers, "but we don't view this as the permanent state"
** Oppenheimer ("outperform," PT: $285) says, while AWS's long-term growth outlook appears stronger, near-term profitability and cash flow could remain under pressure
     
     

(Reporting by Joel Jose in Bengaluru)
((joeljose@thomsonreuters.com))