Amazon's $578 Billion AWS Backlog Is Growing Faster Than Its Revenue

The Amazon Web Services (AWS) backlog reached $578 billion and is growing at triple-digit rates. AWS sales, however, grew 39.3% to $46 billion. Amazon missed earnings estimates, and shares fell more than 7% in after-hours trading. Trailing free cash flow swung to an outflow of $42.4 billion, versus an inflow of $14.8 billion a year earlier. Why is the AWS backlog outrunning revenue? Backlog rose $82 billion from the second quarter, according to the earnings call. In contrast, quarterly AWS sales added $3.8 billion. A year earlier, the backlog stood at $200 billion. It has nearly tripled while sales grew 39.3%. AWS added $4.6 billion in sequential sales during the second quarter, so the latest gain was smaller.

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