Amazon is spending $220B. Is 37% AWS growth enough to justify it?
u/FailOk1528 ·
Reddit — r/investing
· July 31, 2026 at 03:17
· ⬆ 29 pts
· 💬 18 comments
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Amazon’s latest quarter was a strange combination.
AWS growth accelerated to 37%, Amazon raised its 2026 capex plan to around $220B, and free cash flow turned negative.
Despite that, the stock jumped roughly 9% after hours.
It makes me think investors don’t necessarily hate massive AI spending. They hate spending that isn’t producing visible growth. Amazon showed enough AWS acceleration for the market to overlook the cash burn, at least for now.
How long would you be comfortable with negative free cash flow if AWS keeps growing at this rate?