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Amazon lifts investment plans after strong cloud sales; shares jump
['Deborah Mary Sophia', 'Greg Bensinger', 'July', 'Min Read']
Yahoo Finance
Amazon CEO Andy Jassy said demand remained so strong that the company still lacked enough computing capacity to serve customers despite raising its capital spending forecast by 10% to $220 billion.
He said the cost of purchasing memory chips was a prime factor in driving the company's capital spending forecast higher.
Amazon's free cash flow turned sharply negative.
The company burned $7.6 billion of cash on a trailing 12-month basis in the second quarter, compared to $18.2 billion in free cash flow a year earlier.
Other Big Tech competitors, including Microsoft, Alphabet and Meta also reported big drops in free cash flow as they ramp up spending.