Why Amazon stock isn't getting bogged down by its negative free cash flow

Amazon's stock surged by 15% despite reporting negative free cash flow in its second-quarter earnings, a different reaction compared to Meta and Alphabet which saw their stocks fall after similar reports. Maxim Group analyst Tom Forte explains that investors are focused on the five consecutive quarters of accelerating revenue growth for Amazon Web Services (AWS), driven by demand for AI. He notes that Amazon's increased CAPEX outlook, mostly for memory inflation, is seen as a worthwhile investment by investors.