Stock Market Today, Oct. 29: Amazon Falls on Q3 Earnings Report and Capex Concerns

AMZN fell 4.25% on October 29 after Q3 results missed on both lines and Q4 guidance landed mostly below the Street's number, overshadowing a strong AWS print.

Revenue came in at $201.9B against $202.2B expected. EPS of $1.89 trailed the $1.97 consensus. The miss on revenue is thin, but the EPS gap is roughly 4%, and the market treated both as a negative surprise.

Q4 guidance of $240-247B brackets analyst estimates of $244.51B. The midpoint of $243.5B sits slightly under consensus, so the range gave bulls little to hold onto. Interpretation: with the headline numbers soft, the guide offered no upside surprise to offset the miss.

AWS was the counterweight. The segment grew 39% year over year to $46B, and management projected growth above 40% in 2027-2028. That outlook underpins management's case for $220B in capex. Interpretation: the selloff suggests investors are weighing that spending against near-term misses, and the stock's drop shows the AWS growth outlook did not fully answer capex concerns on the day.