Amazon shares fall 7% after results despite AWS growth accelerating to 39.3%
Key Facts
Amazon shares fell about 7% in after-hours trading on October 29 after the company reported results, according to the Associated Press. Investors focused on the cash being consumed by the company’s artificial intelligence investments, despite strong growth in its cloud business. In the same session, Amazon shares fell to $243.79 at the close, compared with $254.60 on October 28, according to EL7 data. Intel shares fell to $92.07, from $95.53 in the previous session, according to the same data. The moves followed a day in which the Nasdaq Composite rose 1.2% at the October 28 close, as investors awaited results from major technology companies and the Federal Reserve’s decision.
In Amazon’s results, sales at its AWS cloud computing unit rose 39.3% to $46 billion in the third quarter of 2026, according to the Associated Press. The growth rate was higher than the 37% recorded in the second quarter, putting the business on its fastest growth pace in about five years. AWS performance was a strong point in the company’s results, but it did not prevent the stock from falling after the announcement. Investors’ attention, the news agency said, was focused on the cash burn tied to artificial intelligence investments. Cloud growth thus coincided with market questions about the cost of expanding in this area.
Intel shares fell 18% in extended trading on October 29 following its results report, according to Reuters via MarketScreener. The company pointed to near-term headwinds in the personal computer market, as the stock fell sharply after the results. The signal differed from Amazon’s cloud performance, as pressure on Intel was tied to near-term concerns about the PC market. Intel shares had closed at $95.53 on October 28, then ended the October 29 session at $92.07, according to EL7 data. The extended-trading move shows that the market reaction to the results continued after the close, while closing data remained separate from that later move.
For the fourth quarter of 2026, Amazon expects sales of between $240 billion and $247 billion, equivalent to annual growth of between 12% and 16%, according to the company and the Associated Press. Analysts had expected sales of $244.16 billion for the same period. The guidance range puts the low end below analysts’ expectations and the high end above them. These estimates remain a focus after the stock’s decline, alongside continued AWS growth and spending on artificial intelligence. The results and guidance came during a week marked by anticipation of results from major technology companies and the Federal Reserve’s decision, after the Nasdaq Composite rose 1.2% on October 28.