Earlier today we asked the question every Amazon holder has been asking all year: why does this stock never work? Tonight Amazon (AMZN) answered it with one number: -$33.5 billion.
That is how much free cash flow Amazon burned in Q3 alone. Bloomberg consensus expected an outflow of $7.7 billion; Amazon came in more than four times worse, as quarterly capex exploded to $77.3 billion, up 43% from $54.2 billion in Q2. Trailing free cash flow collapsed to -$42.4 billion, from -$7.6 billion three months ago. To help pay for it, Amazon raised $48.1 billion of new long-term debt during the quarter.
Everything else was a sideshow. AWS grew 39.3%, its fastest in nearly five years, but short of the 42% the buyside was actually looking for; operating income hit a record $28.1 billion, right on the $28 billion whisper; EPS of $1.89 missed the $1.97 consensus; and Q4 guidance came in light on both revenue and operating income.
We had a feeling:
not gonna work this time either
*AMAZON 3Q EPS $1.89, EST. $1.97— zerohedge (@zerohedge) October 29, 2026
It didn't. The stock tumbled as much as 12.5% after hours to around $223 (and briefly traded down to ~$214), well beyond the 7.5% implied move, wiping out the entire post-Q2 rally and sending the stock back to levels last seen in early April.
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