Amazon shares sink 7% as AI spending fuels cash-burn concerns, overshadow cloud growth
Amazon's shares dropped significantly in after-hours trading following disappointing earnings and substantial investments in artificial intelligence. The company reported a net income decline and lower-than-expected forecasting for the holiday season. Its cloud computing unit, Amazon Web Services, saw robust growth but raised concerns over cash burn from high capital expenditure. Additionally, Amazon's advertising revenue growth missed analysts' expectations for the first time in seven quarters.
