Amazon is an American technology and commerce company that operates an online store, cloud services through AWS, digital advertising, and services such as Prime and Prime Video. It was founded in 1994 and is based in Seattle, Washington, and Arlington, Virginia. The stock trades on Nasdaq under the ticker AMZN (Wikipedia).

AMZN stock is having a fairly mixed year. From the beginning of 2026 through the close on October 30, it rose by around 4%, but the latest earnings report brought the market back to the big question facing all technology giants: how much does it cost them to pursue AI, and when will that money come back through revenue?

In the most recent quarter, AWS continued to grow very rapidly, and the company reported a record operating profit. From the market’s perspective, this is a sign that demand for cloud services and AI infrastructure is real, and that Amazon is still managing to grow both its cloud and commerce businesses.

On the other hand, the investment in data centers and AI infrastructure is already weighing on cash flow. Free cash flow over the past 12 months turned negative to around $42 billion, and the company still plans capital expenditures of around $220 billion in 2026. Therefore, the market is not looking only at AWS’s growth rate, but also wants to see whether this enormous investment is beginning to turn into cash.

From a technical perspective, the stock closed around $240. It is below the 50-day exponential moving average, which is around $254, and also slightly below the 200-day simple moving average, which is around $243.

Will Amazon be able to turn AWS’s strong growth into revenue and cash flow that justify the costs of AI, or will the market continue to put pressure on the stock as long as expenses are growing faster than the cash coming in?

Time will tell...

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