AWS earnings jump, but quarterly capex hits $77 billion and shares fall

Amazon's AWS reported strong earnings growth, while quarterly capital spending reached $77 billion. Shares fell as Amazon forecast a weaker retail fourth quarter and continued data center spending.

Why it matters: Investors are now punishing heavy AI infrastructure spend even when cloud growth is strong, the same tension seen in Google's AI Mode economics. It suggests the market wants evidence of returns just as hyperscalers keep committing to more capacity, and Nvidia's financing of customers makes that loop more fragile.