Amazon's Earnings Just Hit a Record. So Why Is the Stock Down 11% From Its Peak?

Amazon (AMZN) posted record earnings, yet the stock sits 11% below its peak as investors focus on cash burn rather than profit.

AWS revenue jumped 39% to $46 billion, and e-commerce margins came in strong. The selloff traces to two concerns: negative free cash flow tied to $220 billion in AI capital expenditures, and slowing North American e-commerce growth.

The e-commerce slowdown has a specific explanation. According to the source, it stemmed largely from a Prime Day scheduling shift, which suggests the deceleration reflects timing rather than weakening demand. That is interpretation, but it frames the North American softness as a comparison-period issue instead of a structural one.

The free cash flow question is the harder debate. A $220 billion AI capex commitment pushing cash flow negative gives bears a concrete objection, while a 39% AWS growth rate on a $46 billion base gives bulls evidence the spending is meeting demand. The 11% drawdown shows the market currently weights the former more heavily.