Amazon's cloud unit, AWS, grew 39% last quarter, its fastest pace in nearly five years, CNBC and the Guardian report. But the company missed Wall Street's profit forecast, and its stock fell more than 6% in late trading, the outlets report.

Amazon earned $20.69 billion, or $1.89 a share, the Guardian reports. Analysts had expected $1.97 a share. Sales rose to $201.94 billion. AWS sales reached $45.98 billion, beating forecasts, CNBC reports.

Heavy spending on AI has eaten into cash, CNBC reports. Free cash flow was negative for a second quarter in a row, with an outflow of $42.4 billion over the past 12 months, the outlet reports. Amazon spent $77.3 billion on buildings and gear in the quarter, far above the $58.7 billion analysts expected, CNBC reports, citing FactSet.

Amazon still expects to spend $220 billion this year, the outlets report. CEO Andy Jassy said the company will "spend meaningfully more in 2027," CNBC reports. He said AWS sales should grow "over 40%" next year and in 2028. "Our AWS investment in functionality and infrastructure is working," he said.

Amazon expects holiday quarter sales of $240 billion to $247 billion, the outlets report. The middle of that range is below what analysts expected, CNBC reports. Amazon plans to hire 300,000 US seasonal workers, up from 250,000 last year, the Guardian reports.

The results come as investors worry about big AI spending across tech, the Guardian reports. Alphabet's stock fell sharply on Thursday after its own report, the outlet reports.

What we know: AWS sped up, but Amazon missed profit forecasts and burned cash on AI.
What we don't: When the AI spending will pay off for investors.