AWS Growth Fuels Amazon's Resilience Amid Cash Flow Pressures
Amazon's stock has been underperforming lately, but its core business is showing strong growth. The e-commerce giant's cloud computing arm, Amazon Web Services (AWS), saw a 37% year-over-year revenue increase, with a large backlog of orders to fulfill. Advertising revenue also grew by 26%, contributing to higher operating income.
Despite this growth, Amazon's free cash flow turned negative due to heavy capital expenditures, such as investments in AI data center capacity. However, the company's solid balance sheet and long-term contracts provide support for its positive outlook.
The market currently prices in near-term risks, but investors remain bullish on Amazon's growth potential and financial strength. On Pluang, 91% of order activity is to buy as of September 17, with a stock price of $251.15, up 2.11% for the day.