Amazon earnings preview: AWS is booked up, and Wall Street wants to know what comes next
Ahead of third-quarter earnings, Amazon CEO Andy Jassy indicated that AWS capacity is substantially booked for this year, next year, and part of 2028, with demand from AI research companies exceeding available supply. Amazon increased capex guidance to $220 billion for 2024, primarily for AI and cloud infrastructure, yet Jassy stated the company is still leaving meaningful demand unserved. The company's free cash flow turned negative at $7.6 billion for the trailing twelve months as infrastructure spending outpaced operational cash generation.
Key points
- AWS capacity booked through 2028 with strong AI demand
- Amazon capex guidance raised to $220 billion
- Significant unmet customer demand despite expansion
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