Schwab Network on $AMZN (Oct 30, 2026)

Let's start out with Amazon. AWS was a standout, but it's not enough to account for the other misses. Yeah, we were seeing the shares down about 6.5%. Net sales actually did miss the streets expectations coming in at $21.94 billion.

She was looking for around $22.3 billion. It's still a 12% increase on a year-over-year basis, but they did see about $900 million in headwinds just from foreign exchange itself.

The EPS also did miss coming in at $189. Street was looking for $1.96. And we did see once again free cash flow actually coming in negative for Amazon for the second quarter in a row.

Now AWS did beat actually seeing an increase of 39% on a year-over-year basis. And their guidance moving forward is estimating that AWS could actually achieve the the low 40% which is actually a really good sign here.

Uh but when you're looking at their annual uh their their backlog of orders, it's sitting around $578 billion, growing well over triple digits on a year-over-year basis. But the advertising business did actually miss.

That came in at 19.64 billion. Street was looking over 20.82 billion. And their online stores also missed here. So you are seeing some some weakness.

Their guidance moving forward came in a little bit light, especially when you're looking at the revenue guidance. And unfortunately they still are talking about raising capback spend in order to obviously uh build out their AI uh stack and once again that's kind of hurting the street.

So we are seeing a pullback to the downside. Uh and I think this is once again a high bar and a narrative where negative free cash flow is just something that is not being touted here in the market nor should it be.

So we are seeing a pullback to the downside. But let's see if we actually have some buyers stepping in at these current levels.