Stock Market Today, Oct. 30: Amazon Misses Revenue and Earnings Expectations

AMZN fell 1.41% after missing Q3 revenue and earnings expectations, as investors focused on the spending needed to fuel its AI ambitions. The company plans $220B in capital expenditures for 2026, and trailing-12-month free cash flow sits at negative $42.4B.

The miss landed on a rough tape. The S&P 500 dropped 2.07% and the Nasdaq slid 2.86%, so AMZN's 1.41% decline was milder than the broader market's losses. Interpretation: the muted relative reaction suggests the market is not fully pricing the miss as thesis-breaking.

Support for the bull case came from AWS, which grew 39% year-over-year. AMZN also carries $114B in liquidity, a cushion against the negative free cash flow and the heavy spending ahead.

Capital rotated toward defensive retail. WMT and COST both gained while the major indices fell. Interpretation: traders sought retail exposure with no AI spending overhang, which reads as a relative-value trade against AMZN rather than a verdict on fundamentals.

The tension is clear. AMZN is pairing a Q3 miss with $220B in planned 2026 spending and negative free cash flow, offset by 39% AWS growth and a deep liquidity buffer.