AWS Margin Expansion and Retail Execution Power Amazon (AMZN) in Q3

What happened: Wedgewood Partners' Q3 2026 investor letter cited Amazon (AMZN) as a leading contributor, pointing to AWS revenue growth and margin expansion plus steady retail execution. Key numbers: AWS revenue growth 37% vs 17% a year ago; AWS operating income up 63%; backlog around $500 billion, up more than 2X year over year and 37% from 90 days ago; advertising grew Why it matters: The letter says the demand signal and strong execution make it prudent for Amazon to target doubling its circa 2025 AWS capacity by 2027, and that high returns on capital justify accelerated capex spending. Market: +5.6% today ($262.94), +16.1% YTD, 0.8x vol — as of 16:17 UTC

Wedgewood Partners' Q3 2026 investor letter cited Amazon (AMZN) as a leading contributor, pointing to AWS revenue growth and margin expansion plus steady retail execution.

The letter says the demand signal and strong execution make it prudent for Amazon to target doubling its circa 2025 AWS capacity by 2027, and that high returns on capital justify accelerated capex spending. Market: +5.6% today ($262.94), +16.1% YTD, 0.8x vol — as of 16:17 UTC