Amazon Shares Slide on Weak Sales Forecast and Cash Burn
Amazon shares dropped after the retailer reported heavy cash burn and issued a fourth quarter sales forecast below Wall Street expectations. While cloud revenue grew strongly, capital spending surged as the company invested heavily in artificial intelligence.
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Amazon.com shares fell 6.8% in extended trading on Thursday after reporting a $42.4 billion cash burn and issuing holiday-quarter revenue guidance below expectations. The pullback followed a 4.3% decline during regular trading, closing at $243.79. Investors balked at the heavy capital expenditure required to fund artificial intelligence infrastructure and data center expansion.
