Amazon approaches Q3 earnings amid significant cash expenditure

Amazon is preparing to release its third-quarter earnings report on October 29. Financial analysis indicates a substantial cash gap for the first half of 2026, where operating cash generated totaled $71.419 billion against $98.411 billion in gross property and equipment purchases, resulting in a $26.992 billion shortfall.

This figure excludes separate investments in AI companies, such as $28.7 billion in OpenAI preferred shares and $10.0 billion in Anthropic preferred stock. To finish the 2026 calendar year with a positive cash balance under this specific metric, Amazon would need a surplus exceeding $26.992 billion in the second half of the year.

Market analysts are closely watching AWS growth, AI infrastructure spending, retail margins, and advertising revenue. For the stock, technical indicators suggest immediate support levels between $245 and $248, with resistance near $250.