Amazon Stock Price Plummets, But AWS Growth Continues to Surge

Amazon's stock price has seen significant fluctuations in recent weeks, dropping from an all-time high of $3 trillion to its current price of $258.63.

The company reported a blowout quarter with revenue hitting $200.6 billion, up 20% and surpassing the Street's expectations of $196.6 billion.

AWS grew at its fastest pace in nearly five years, throwing off $16.6 billion in operating income at around a 39% segment margin.

However, Amazon's free cash flow came in at negative $7.7 billion for the quarter, and TIKR's estimates put full-year 2026 free cash flow around negative $34 billion before it recovers.

Cheif Executive Officer Andy Jassy explained that the company is spending years before the revenue lands, dragging free cash flow until capacity comes online to flip it.