Amazon's Earnings Just Hit a Record. So Why Is the Stock Down 11% From Its Peak?

Amazon reported record earnings with AWS revenue up 39% to $46 billion and strong e-commerce margins, but the stock fell 11% from its peak due to investor concerns about negative free cash flow from $220 billion in AI capital expenditures and slowing North American e-commerce growth. However, the e-commerce slowdown was largely due to a Prime Day scheduling shift, and the company's long-term growth prospects remain strong with potential for significant earnings expansion.