Amazon is set to release its third-quarter earnings after market close on Thursday ET, with the market focusing on its AI spending. Analysts project Amazon Web Services (AWS) sales to grow by 38%, marking its fifth consecutive quarter of accelerating revenue growth. Wall Street will also be watching for comments from Amazon executives regarding AI expenditures, with capital expenditures expected to increase from $200 billion to $220 billion in 2026, and potentially exceeding $280 billion in 2027. Aggressive AI spending has eroded the company's cash flow, with free cash flow anticipated to be negative $9.9 billion this quarter.