Benzinga Bulls and Bears: Carvana, Rivian, Amazon
Key takeaways
- Tech giants Amazon and Alphabet faced earnings setbacks, while Carvana and Rivian delivered stronger-than‑expected results, reflecting mixed sentiment in the market.
- Amazon revenue $201.94 billion
- Amazon earnings $1.89
- Amazon free cash flow $42.4 billion outflow
What happened
Amazon.com Inc. (NASDAQ: AMZN) missed revenue and earnings estimates in its third‑quarter report, while its cloud unit AWS posted strong growth. Alphabet Inc. (NASDAQ: GOOGL) saw a sharp decline after its Q3 results highlighted slowing search ad revenue, despite solid cloud performance. Carvana Co. (NYSE: CVNA) and Rivian Automotive Inc. (NASDAQ: RIVN) both beat earnings and revenue expectations, lifting their shares. The broader market fell, with the S&P 500 down 0.6% for the week, Nasdaq…
Why it matters
Amazon’s miss signals potential pressure on its retail and cloud businesses, raising concerns about future cash flow and AI‑related spending. Alphabet’s drop reflects doubts about the sustainability of its core ad revenue, a key driver of its valuation. Market declines indicate heightened risk appetite and…
Short-term and longer-term
Short-term. Over the next few days, watch Amazon and Alphabet for potential pullbacks as investors digest the earnings miss and assess future cash flow.
Longer-term. For the coming months, Amazon’s AI‑related capital expenditures and Alphabet’s ad revenue trajectory will be key to long‑term valuation.
Words on this card
- Free cash flow
- The cash a company generates after paying for operating expenses and capital expenditures.
- Adjusted EBITDA
- Earnings before interest, taxes, depreciation, and amortization, adjusted for non‑recurring items.
- AI infrastructure
- Hardware and software systems that support artificial intelligence workloads.
- Search advertising
- Revenue from ads shown alongside search engine results.
- Cloud computing
- Providing computing services over the internet, often through data centers.
- Revenue
- Sales — money the company took in before costs.