Amazon FCF Plunges to $1.2B on $44.2B CapEx Record, Market Shrugs Off AI Bet

Investors largely ignored Amazon's trailing 12-month free cash flow crashing from $26B to $1.2B after a $59.3B YoY CapEx surge to $44.2B in Q1, prioritizing blockbuster AWS growth to $37.6B (28% YoY, 37.7% margin) and $364B backlog ex-Anthropic. This follows May 4's Q4 FY2025 revenue beat at $213.4B (+12% YoY), $25B operating income, and CEO Andy Jassy's CNBC hype of AI as the 'biggest technology transformation.' Q1 delivered $181.5B revenue, $23.9B operating income (13.1% margin), and EPS of $2.78 crushing $1.73 consensus by 60.7%, with 2026 CapEx guided at $180B-$190B amid debt at $119.1B.