AWS (Amazon's cloud computing business) and capital expenditures are the main focus of Amazon's earnings report. A JPMorgan survey shows the biggest expectation gap lies in AWS. In the third quarter, buy-side investors' "passing threshold" for AWS revenue growth was approximately 42%, higher than Wall Street's approximately 37% (i.e., the majority expectation of investment banks and securities analysts); total revenue was expected to be approximately $202-203 billion, and operating profit was expected to be approximately $28 billion, also higher than the consensus expectation. Looking ahead to 2027, more optimistic buy-side investors expect AWS revenue growth of 45%-50%, with most investors expecting capital expenditures of $330-350 billion, while Wall Street's is only slightly above $280 billion. However, it should be noted that pressure from US consumers could still affect the retail business; in addition, investors also want management to explain Amazon's own AI Agent strategy.
