Amazon will report third-quarter earnings after the bell on Thursday, with adjusted earnings per share expected at $1.96 and revenue of $202.31 billion, according to LSEG. AWS revenue is estimated at $45.48 billion and advertising at $20.82 billion, with AWS sales expected to grow 38% year over year. Amazon raised its 2026 capital expenditure forecast to $220 billion, and analysts expect spending to exceed $280 billion in 2027 as demand for AI computing power remains strong. These investments have contributed to negative trailing-12-month free cash flow of $7.6 billion, while more than 57,000 jobs have been cut since 2022. Amazon has also blocked several third-party AI agents from its platform, but its Alexa for Shopping assistant has surpassed 400 million users, raising questions about monetization and competition for digital advertising.
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