Gene Munster Flags Google Earnings As A Warning Sign To Amazon Investors

• Gene Munster emphasized on social media platform X  risk that personalized bots pose to Amazon’s business is increasingly real. 
• Analysts expect AWS sales to grow 38% in the quarter ending September, its fifth straight quarter of gains. 
• Google parent Alphabet missed third quarter revenue expectations. 

Amazon Inc. (AMZN) share price dropped about 4% on Thursday ahead of the release of its quarterly results scheduled after-hours as investors fret over soaring capital expenditures eating into hyperscalers’ cash flows, while investor Gene Munster flagged weak Google results as a warnings sign to Amazon investors. 

“Google results were a warning sign to Amazon investors,” Gene Munster, managing partner at Deepwater Asset Management, wrote in a post on X.  

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“Tonight the Street will likely discount favorable Sep results and an inline Dec guide because the long-term (starting second half of 2027) risk that personalized bots pose to the business is increasingly real,” Munster added. 

Investors have been growing increasingly jittery around justifying bloated capital expenditure plans of hyperscalers and large tech firms with doubts growing the these expenses might not convert into substantial revenue. 

Google missed third quarter revenue expectations on Wednesday which further added fuel to rising investor anxiety. 

Investors Bet Amazon AWS Revenue To Jump

Market participants anticipate robust expansion in Amazon's cloud unit. According to StreetAccount estimates quoted by CNBC, AWS revenue is projected to climb 38%, accelerating slightly from a 37% surge in the previous quarter. The result would mark its fifth straight quarter of accelerating sales growth.

Chief Executive Andy Jassy also previously noted that Amazon's cloud infrastructure availability is "largely sold out" heading into next year, adding that the firm has secured substantial commitments extending into 2028.

“We always leave a certain amount for on demand and our inference service Bedrock or EC2, but largely sold out all the big chunks,” Jassy stated during an Andreessen Horowitz podcast appearance last week. “A good chunk of ’28 is sold out.”

GOOGL Stock Under Pressure

Shares of Google parent company Alphabet Inc. (GOOG, GOOGL) faced severe selling pressure following Wednesday’s lackluster third-quarter financial results, putting the tech giant on pace to lose over $600 billion in market value throughout October.

The search engine operator reported third-quarter financial results Wednesday that highlighted strong top-line revenue growth across its core digital ad and cloud operations, though massive investments in artificial intelligence infrastructure and investment losses squeezed profitability.

The Google parent company posted consolidated revenue of $127.58 billion for the three months ended Sept. 30, 2026, marking a 25% increase compared with $102.35 billion in the same period last year. Net income available to common stockholders fell to $26.17 billion, or $2.12 per share, compared with $34.98 billion, or $2.87 per share, a year earlier.

GOOGL, AMZN Stock: Retail View

Retail sentiment on Stocktwits was ‘extremely bullish’ and ‘bullish’ respectively on Google and Amazon, with ‘high’ retail chat volumes. 

GOOGL stock has lost 9.3% year-to-date and AMZN stock added about 6%.

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