Amazon.com Inc. shares took a hit after the company revealed higher-than-expected capital spending and the slowest growth in its core e-commerce business in three years. The tech giant reported spending over $77 billion on property and equipment in the third quarter, a figure that surpassed analysts’ estimates. This surge in spending is tied to Amazon’s push to expand its data centers and meet rising demand for artificial intelligence services.
Third-quarter sales also fell short of expectations, climbing just 12% to $201.9 billion. The slower growth in online sales has raised concerns among investors about the company’s ability to maintain its momentum amid increasing competition and economic uncertainty.
The combination of elevated capital expenditures and weaker-than-anticipated revenue growth has put pressure on Amazon’s stock, as investors reassess the company’s financial strategy and long-term prospects.