Key Highlights

● AWS Revenue reached about $46.0 billion, ahead of the $45.29 billion expected.

● Trailing 12-month free Cash Flow swung to negative $42.4 billion from positive $14.8 billion.

● Fourth-quarter sales guidance of $240 billion to $247 billion had a midpoint below consensus.

● Nasdaq-100 futures fell after Thursday's close as Amazon and Intel slid after hours.

The third-quarter report from Amazon (NASDAQ:AMZN) showed a reaccelerating cloud Business but a softer-than-expected holiday-quarter outlook and deeply negative free cash flow, sending its shares and Nasdaq-100 futures lower after Thursday's close.

The evening's biggest swing factor

The regular session was over, but the day's market story wasn't. Shortly after the Nasdaq Composite closed down 365.13 points at 26,184.72 on Thursday, October 29, Amazon reported.

The stock, which had already fallen in the regular session to close at $243.79, according to market data, slid further in after-hours trading. One source said the stock fell sharply at its worst point before paring losses, and another showed it near $226.91. Figures varied by source and time stamp, as is common in thin extended trading, but all pointed lower.

Futures followed. Nasdaq-100 futures dropped, S&P 500 futures fell and Dow futures edged higher, according to one report, which tied the moves to Amazon and Intel (NASDAQ:INTC)'s after-hours declines.

AWS delivered

The cloud business gave investors something to cheer. Amazon Web Services revenue reached about $46.0 billion, ahead of the $45.29 billion expected, and one headline called it the fastest growth in about five years. Amazon said it expects AWS growth to speed up further in 2027 and 2028, according to market data.

Total net sales of $201.9 billion were roughly in line with forecasts, and the company posted a record operating margin.

The parts that hurt

Three items weighed on the stock. Earnings of $1.89 a share fell short of the roughly $1.97 analysts had expected. Fourth-quarter sales guidance of $240 billion to $247 billion put the midpoint below the $244.5 billion consensus, a soft forecast for the all-important holiday quarter.

And then there was cash. Trailing 12-month free cash flow was negative $42.4 billion, compared with a positive $14.8 billion a year earlier. Amazon kept its $220 billion capital-spending plan for 2026, a figure that reflects its heavy Investment in AI data centers.

Jassy's long view

Chief executive Andy Jassy offered a sweeping vision. "There has never been a trillion dollar revenue business, and we may have two of them in the next 5 to 10 years," he said, according to market data.

Same theme, second night

Amazon's report hit a market already on edge about AI spending. Alphabet (NASDAQ:GOOGL) had suffered its worst day since its 2004 IPO in the regular session after its own negative free cash flow and revenue miss, wiping out about $500 billion of market value. Media reports said Alphabet's results "reignited concerns over mounting AI costs."

Amazon was down during the regular session before its report, dragging on consumer discretionary stocks. The S&P 500 slipped 23.59 points to 7,720.39 and the Dow lost 132.54 points to 52,342.56. Small caps rallied, with the Russell 2000 up 28.71 points to 2,859.22.

One market analyst said "markets are no longer rewarding companies simply for investing heavily in AI," according to market commentary.

What to watch

The first test is Friday's open, when Amazon's after-hours price meets full trading Volume and futures resolve into the cash session. Amazon is a member of the Dow, the S&P 500 and the Nasdaq-100, so its move will ripple across all three.

Beyond that, investors will watch holiday-season Demand against the softer guidance, and whether the AWS reacceleration can eventually turn free cash flow back positive. With Alphabet and Amazon both burning cash on AI infrastructure, the market's patience with heavy spending will remain the dominant question heading into November.