Amazon Misses Third-Quarter Estimates as Record Spending Drives a $42 Billion Cash Outflow

Amazon shares fell about 2% after the company missed third-quarter expectations, adding to investor unease over the cost of the artificial intelligence build-out that has weighed on tech stocks this week.

Capital spending reached roughly $77 billion in the quarter, more than double the $35 billion a year earlier. Free cash flow was an outflow of more than $42 billion over the 12 months through September, a record for the company.

The stock sits about 15% below its 52-week high. Along with weak results from Alphabet and Intel, Amazon's report fed the AI-spending worries that helped send the Nasdaq to its worst day since June.