1 Stat That Makes Amazon Hard to Ignore Right Now

AWS growth of 39% year over year is the headline from Amazon's Q3 report, and it is doing the heavy lifting for AMZN. Total sales rose 12% YoY, so AWS is the clear driver of the beat.

The demand signals are specific. Fortune 500 companies increased Amazon Bedrock spending sevenfold, and token volume on the platform climbed 17-fold. Those figures point to rapid enterprise adoption of AI workloads on AWS.

CEO Andy Jassy went further on the outlook, projecting AWS sales will grow 40% in both 2027 and 2028. He also said both e-commerce and AWS could become trillion-dollar businesses within 5 to 10 years. Those are management projections, not guidance backed by reported results, and should be weighed accordingly.

The bear case centers on free cash flow, which is negative because of AI spending. AMZN initially declined after the report but recovered. Interpretation: the rebound suggests buyers are weighing AWS acceleration more heavily than the cash burn, at least for now.