amazon reported after the close and the reaction is a good example of where the market's head is at right now.

the good:

- revenue $201.9B, up 12%

- AWS $46B, up 39%, its fastest growth in almost 5 years

- AWS backlog of $578B in contracted future revenue, more than double a year ago

- operating income $28.1B vs $17.4B a year ago

- Q4 guidance $240B to $247B in revenue

the bad:

- EPS $1.89 vs ~$1.97 expected

- free cash flow over the last 12 months was -$42.4B, compared with +$14.8B a year ago

- ~$220B of capex this year and jassy says they'll spend "meaningfully more" in 2027

stock closed down ~4% today and is down roughly another 6-7% after hours.

caterpillar did the same thing earlier today: beat on earnings ($7.20 adj EPS, revenue up 17% to $20.7B), record backlog, and the stock still dropped hard because it only kept its full-year outlook.

so the AI demand is clearly real, AWS is accelerating, but investors only seem to care about the bill right now.…