Amazon tumbles after hours as quarterly results miss estimates

What did Amazon report?

Amazon shares tumbled 7.3% in after-hours trading on Thursday, to $225.99. After-hours trading happens after the regular close, when far fewer buyers and sellers take part.

Why it matters: Third-quarter revenue came in just below the consensus, the average analyst forecast. Earnings per share, or profit divided by the number of shares, also fell short of that bar.

Total revenue still grew from a year earlier. Amazon Web Services, the cloud computing arm, grew at its quickest pace in several years, the company reported.

Why did the shares fall?

Cash was a pressure point. Free cash flow, the cash left after running and investing in the business, turned negative over the past year. Amazon said a sharp rise in spending on property and equipment drove the outflow.

The stock was already weak before the release. It fell 4.2% in the regular session to $243.79. The Nasdaq-100 slid 1.4%.

Gene Munster of Deepwater Asset Management said beforehand that Google's results were "a warning sign to Amazon investors." He argued AI shopping bots might seriously threaten Amazon's retail business from the second half of 2027.

What did Amazon say about the months ahead?

Amazon's guidance, its own forecast, puts fourth-quarter revenue in a range that includes the analyst consensus. It forecast fourth-quarter operating income, or profit from its main businesses, above the year-earlier level.

Chief executive Andy Jassy projected AWS growth faster than the latest quarter's pace in both 2027 and 2028. He also said "Amazon Leo remains on track to begin initial service this year." Leo is the company's satellite internet service.

Chief financial officer Brian Olsavsky said most Leo costs would still be counted as expenses in the fourth quarter. After the report, Munster said the results may show Amazon positioning itself as a chip and AI company, not only an online store.

What comes next?

What’s next: Regular trading resumes at 9:30 a.m. ET on Friday, Oct. 30. After-hours moves often shrink or reverse once the full market opens. Jassy pointed to the AWS re:Invent developer conference as the next big company event.