TLDR
- Amazon (AMZN) closed at $248.00 on Friday, down $2.38 or about 1%, and traded at $248.80 after hours.
- CEO Andy Jassy said AWS cloud capacity is largely sold out through 2027, with a good chunk of 2028 also spoken for.
- Amazon plans about $220 billion in capital spending for 2026, and Jassy said it could invest a lot more.
- AWS still holds some capacity back for on-demand customers using EC2 and Bedrock.
- Amazon reports third quarter results on October 29.
Amazon (AMZN) stock closed at $248.00 on Friday, down $2.38 or 0.95%. It edged up to $248.80 in after-hours trading, a gain of $0.80 or 0.32%.
The move came as CEO Andy Jassy gave an update on cloud demand. He said Amazon Web Services has sold most of its capacity through 2027.
Jassy spoke on a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg. He said AWS is struggling to keep up with demand from AI labs and enterprises.
Capacity Is Spoken For
“2027 is largely sold out,” Jassy said. He added that “a good chunk of 2028 is sold out” as well.
Capacity for 2026 is already fully committed. So the squeeze is not a future problem, it is a current one.
AWS does keep some room for on-demand needs. Jassy said the company leaves a certain amount for its inference service Bedrock and for EC2, but the big chunks are taken.
EC2 provides cloud servers for running applications. Bedrock gives customers access to AI models for building generative AI apps.
AI developers and business clients want more computing power to train and run their models. That demand is pressing on the capacity AWS has available.
Spending Plans
Earlier this year, Amazon said it would spend about $220 billion on capital expenditure in 2026. Even at that level, supply is not keeping pace.
Jassy said Amazon “could invest a lot more and it wouldn’t be a bad use of capital.” He pointed to the fact that 2026 cloud capacity is already sold.
Those remarks are likely to get attention from investors. Spending levels have been a talking point for Amazon and other big cloud providers this year.
Jassy’s comments were the main news for the stock on Friday. Shares of Amazon ended the day lower despite the upbeat demand message.
Amazon is due to report third quarter results on October 29. Investors will be looking for details on AWS growth, infrastructure spending and capacity expansion.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Be the first to comment