From Bloomberg · · 50s
Amazon Spending Soars on AI Demand
Amazon reports $77bn capital spending as e-commerce growth slows.
In brief
Amazon reports $77bn capital spending as e-commerce growth slows. Amazon spent $77 billion on property and equipment in Q3, far exceeding estimates, to build data centers for AI services while e-commerce growth slowed to 12%. Originally reported by Bloomberg.
Amazon Q3 Earnings
Amazon reported greater capital spending than anticipated and the slowest e-commerce growth in three years.
Capital Spending
Amazon spent more than $77 billion on property and equipment in Q3, far exceeding analysts' estimates.
AI Services Focus
The company is pursuing efforts to build data centers and fulfill demand for artificial intelligence services.
E-commerce Growth
Third-quarter e-commerce sales rose 12% to $201.9 billion, lower than anticipated.
Market Reaction
Amazon shares dropped after reporting higher capital spending and slower e-commerce growth.
The headline
Amazon spent $77 billion on property and equipment in Q3, far exceeding estimates, to build data centers for AI services while e-commerce growth slowed to 12%.
