Canaccord on $AMZN Amazon: 'We see the selloff as a spend-scare overreaction, not a thesis break' Amazon is getting hit after hours for the same reason Meta did: the market saw a $77 billion capex quarter, negative free cash flow and a light profit guide, and hit the sell button. But look at what that spending is buying. AWS grew 39% on a $184 billion run rate with near-40% margins, and management just guided for 40%-plus growth in both 2027 and 2028. That is the clearest multi-year AI demand signal any hyperscaler has given this season. Like Microsoft and Alphabet, Amazon's AI spending is paying off through accelerating cloud growth. And as SpaceX made clear, compute is scarce, so this is spending to meet demand that's already there, not a speculative overbuild. The ad miss is a real blemish worth watching, but the core AI engine has never looked stronger. We see the selloff as a spend-scare overreaction, not a thesis break.