"The market has been really sanguine about negative free cash flow or the prospect of it. You know, it's something that everyone's like freaked out over."
"Operating cash flow rose, but capital expenditure ate nearly all of it. Quarterly operating cash flow reached $26.03 billion (+52.99% YoY) while capex hit a record $44.2 billion (+76.68% YoY)."
"CEO Andy Jassy is selling this as classic Amazon infrastructure investment. He has guided to roughly $200 billion in capex across Amazon in 2026 for AI, custom chips, robotics, and Amazon Leo satellites."
"Long-term debt rose to $119.1 billion from $65.6 billion, raising concerns about the sustainability of Amazon's financial strategy."
Amazon's trailing 12-month free cash flow plummeted from $26 billion to $1.2 billion, primarily due to a $59.3 billion increase in capital expenditures for AI infrastructure. Despite this, Amazon's shares rose 13.96% year-to-date and 40.37% over the past year. Operating cash flow increased to $26.03 billion, but capital expenditures reached a record $44.2 billion. CEO Andy Jassy emphasized the importance of infrastructure investment, projecting $200 billion in capex for AI and technology by 2026. However, long-term debt surged to $119.1 billion, raising concerns about sustainability.
Read at 24/7 Wall St.
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