Amazon keeps $220B capex plan as AWS grows 39% and shares slide 7%
Amazon kept its $220B 2026 capex target while twelve-month free cash flow turned negative; AWS revenue rose 39%, according to TradingView.
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what happened
According to TradingView, Amazon left its 2026 capital expenditure target at $220 billion. Over the trailing twelve months, free cash flow came to -$42.4 billion after $77.26 billion of capex, while operating cash flow climbed 29% to $168.3 billion.
The company expects capex to rise considerably in 2027 and projects AWS revenue growth above 40% for 2027 and 2028. It also plans to offer Trainium AI chips outside AWS in late 2027. AWS revenue grew 39% year on year to $46 billion, but online sales rose only 2%, and the midpoint of management's fourth-quarter revenue guidance fell short of analyst expectations.
Amazon shares dropped more than 7% on Friday amid a tech selloff. Reports cited investor concern about cash burn from large AI investments.
why it matters
The key question for markets is whether Amazon can fund its AI infrastructure from operating cash, given negative free cash flow and rising funding costs for tech companies. The read-across matters for the whole sector, since the spending plans of the largest cloud providers set the tone for technology equities.
market impact
Amazon shares and US tech: worries about AI spending cash burn weigh on the stock
- Amazon shares (AMZN) pressure down — investor worries about AI spending and a soft online sales outlook pressure the stock
- US tech stocks pressure down — a tech selloff driven by concern over cash burn from AI investments
tags
instruments
sources
- Key facts: Amazon.com, Inc. keeps $220B 2026 capex; AWS +39% YoY — TradingView, 1 November 2026 at 07:00 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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