Amazon shares fall on heavy AI spending
Amazon reported strong cloud growth that was overshadowed by heavy artificial intelligence spending and a massive cash burn in the third quarter. The company expects higher capital expenditures next year.
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Amazon.com Inc reported a $42.4B cash burn in the third quarter on Thursday, sending its shares down 7% in extended trading. The heavy spending on artificial intelligence infrastructure overshadowed the fastest cloud growth the company has seen in five years. Investors reacted cautiously as surging capital expenditures swallowed operating cash flow across the broader tech sector.
