Amazon.com Inc. (AMZN) stock fell more than 7% in Friday's premarket trading as investors weighed accelerating cloud growth against soaring AI spending and mounting retail risks.

The selloff came amid broader weakness in technology stocks, with Nasdaq futures falling 2.35% and S&P 500 futures declining 0.99%.

Amazon shares had already lost more than 4% Thursday as analysts raised concerns about capital spending, cash flow and the growing threat of AI-powered shopping assistants.

Amazon Misses Estimates Despite AWS Surge

Amazon reported third-quarter revenue of $201.94 billion, missing Wall Street's estimate of $202.31 billion. Earnings of $1.89 per share fell short of expectations of $1.97.

Revenue rose 12% year over year, while Amazon Web Services (AWS) sales surged 39% to $46 billion, marking the cloud division's fastest growth in nearly five years.

Amazon forecast fourth-quarter revenue of $240 billion to $247 billion, compared with the $244.51 billion consensus estimate.

CEO Andy Jassy expects AWS revenue growth to exceed 40% in both 2027 and 2028.

Wall Street Sees $220 Billion Spending Challenge

Blue Line Capital's Bill Baruch told CNBC that Amazon's biggest challenge was determining when its massive capital spending would peak.

He cited approximately $220 billion in capital expenditures this year, warning that investors needed greater visibility into future spending.

Still, Baruch said AWS growth reaching the low-40% range could support shares. He highlighted Amazon's roughly $496 billion backlog, Trainium chips and Bedrock platform as potential catalysts.

Evercore ISI's Mark Mahaney also identified AWS growth as the critical metric, alongside cloud margins and backlog expansion.

Mahaney warned that aggressive AI investment had weakened free cash flow expectations across major cloud providers.

However, he said Amazon appeared capable of financing its expansion, citing approximately $100 billion in debt raised over the previous 12 months.

Retail Weakness And AI Shopping Threaten Growth

Maxim Group's Tom Forte, who maintained a Buy rating and $350 price forecast, warned that higher gasoline prices and pressure on consumers could weigh on Amazon's holiday shopping performance.

Forte also flagged potential competition from a DoorDash-Instacart combination and the growing adoption of AI-powered shopping assistants.

Deepwater Asset Management's Gene Munster told CNBC Amazon's stock decline reflected legitimate retail concerns, including the risk that personalized AI shopping bots could disrupt its business beginning in late 2027.

However, Munster viewed Amazon's multiyear AWS growth outlook as an unusually strong signal of sustained AI demand.

He also said growing demand for Amazon's Trainium chips could challenge Nvidia Corp. (NVDA), even as broader cloud expansion benefits AI infrastructure providers.

AMZN Price Action: Amazon shares declined 7.15% to $226.35 in Friday's premarket trading, according to market data.