Andy Jassy says AWS could "very possibly be a trillion dollar annual revenue business" in time

Amazon shares fell about 7.5% over the past month as investors weighed the company’s heavy capital spending against strong cloud results. AWS grew 37% year over year, its fastest rate in 18 quarters, and management said its backlog reached $496 billion, with much of 2027 capacity already reserved. On the earnings call, CEO Andy Jassy told analysts AWS could eventually reach $1 trillion in yearly sales. Amazon has guided to roughly $200 billion in 2026 capital expenditures and reported negative trailing-twelve-month free cash flow, while Loop Capital’s Rob Sanderson carries a Street-high $405 price target. The remark comes amid debate over whether Amazon’s large AI and data-center investments will pay off after the buildout.