AMZN Amazon
$243.79-$10.81 (-4.25%)
NASDAQ · As of 4:00 PM ET 10/29/26
Amazon.com (AMZN -4.25%), a global e-commerce and cloud computing platform, closed at $243.79, down 4.25%. Investors were focused on its third quarter earnings report after the close, with AWS growth, capex, margins, and fourth-quarter guidance in view.
Trading volume reached 70.8 million shares, coming in about 81% above its three-month average of 39.2 million shares. Amazon.com IPO’d in 1997 and has grown 248,876% since going public.
How the markets moved today
The S&P 500 (^GSPC -0.30%) closed at 7,720, down 0.31%, while the Nasdaq Composite (^IXIC -1.38%) finished at 26,185, down 1.38%. Among global e-commerce and retail peers, Walmart closed at $121.25, up 2.09%, and eBay closed at $121.19, up 2.69%, highlighting a mixed read-through for retail names.
What this means for investors
On Thursday, Amazon shares fell ahead of its after-hours Q3 report as investors watched AWS cloud computing growth, $220 billion in 2026 capex, margins, and fourth-quarter guidance. The company’s stock sank further in after-hours trading, following misses on both earnings per share (EPS) and revenue expectations for Q3.
Amazon reported revenue of $201.9 billion, a 12% year-over-year increase, and diluted EPS of $1.89. However, Wall Street was expecting $202.2 billion in sales and earnings of $1.97 per share. Moreover, the e-commerce giant forecasted between $240 billion and $247 billion in fourth-quarter revenue compared with analysts’ average estimate of $244.51 billion.
Even so, the company is delivering impressive performance from its AWS business, justifying the case for its substantial $220 billion in capex. The division’s sales growth accelerated to 39% year over year to $46 billion in Q3, up from 37% in Q2. The artificial intelligence boom led to new agreements with the likes of Meta and Salesforce. Management now projects AWS revenue growth rates will exceed 40% in both 2027 and 2028. Over the long haul, Amazon’s capex investments look poised to deliver solid returns.
Robert Izquierdo has positions in Amazon, Meta Platforms, Salesforce, and Walmart. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Salesforce, Walmart, and eBay. The Motley Fool has a disclosure policy.
