Amazon Shares Drop 7.3% After Hours, Falling Below Lowest Analyst Target

Amazon’s stock fell 7.30% in after‑hours trading to $225.99, dropping below $230, the lowest of 42 analyst price targets tracked by TipRanks. The decline followed a third‑quarter earnings miss: EPS of $1.89 versus the $1.96 consensus and revenue of $201.9 billion versus the $202.3 billion estimate. Free cash flow was negative for a second consecutive quarter, and the 12‑month free‑cash‑flow outflow widened to $42.4 billion from $7.6 billion as AI‑related spending rose. Amazon’s AWS segment grew 39% to roughly $46 billion, but the company’s operating‑income guidance for Q4 is $31 billion, below the $33 billion consensus, and CEO Andy Jassy said it will spend significantly more in 2027. The after‑hours drop widened the gap between the current price and the average Wall Street target of $332.26, which is about 47% above the after‑hours level.