All eyes will be on Amazon.com Inc.’s cloud business when the technology giant reports earnings on Thursday, after shares of Microsoft Corp. plunged last week due in part to slowing growth at its key cloud-computing platform. This was not an issue for Amazon’s October earnings, as its shares jumped almost 10% following better than expected revenue from Amazon Web Services, also known as AWS. Now, however, fear is rippling through the tech sector, and Amazon investors are increasingly concerned that the sl ...

Market Performance - U.S. stocks have experienced three consecutive down days, with the market closing lower [1] - The Russell 2000 index fell nearly 2%, finishing down 1.8%, marking the worst performance among major U.S. equity benchmarks [2] - Other indices also declined, with the Nasdaq down 1.59%, S&P 500 down 1.23%, and Dow down 1.2% [2] Company Earnings - Amazon reported disappointing earnings, indicating a significant increase in capital expenditures for the year, similar to trends seen in Microsoft and Alphabet [3] - Following the earnings report, Amazon's stock dropped more than 10% in after-hours trading [3] Cryptocurrency Market - Bitcoin has seen a drastic decline, losing 25% of its value over the past week and dropping 13% in the last 24 hours, settling around $63,000 [4] - Ethereum has also fallen below the $2,000 support level, currently at $1,847 [4] - Publicly traded treasury companies and bitcoin miners are facing severe challenges, with Strategy reporting a $12.4 billion quarterly loss in Q4 [5] Commodity Market - Silver prices have crashed over 19%, currently trading at $72 [6]

Core Viewpoint - Amazon.com, Inc. is facing regulatory scrutiny in Germany regarding its pricing practices on the marketplace, which may impact its upcoming quarterly earnings report [1][3]. Group 1: Regulatory Pressure - Germany's Bundeskartellamt has prohibited Amazon from influencing marketplace seller prices through its price policing mechanisms [1]. - The authority highlighted that third-party merchants account for approximately 60% of units sold on amazon.de, indicating the significant role of these sellers in Amazon's marketplace [3]. Group 2: Pricing Tools and Competition - Amazon has been using checks to identify overpriced offers, which can lead to the removal of listings or reduced visibility in the Buy Box, potentially harming seller sales [3][4]. - The agency's president, Andreas Mundt, stated that Amazon competes directly with marketplace sellers, and influencing their pricing is only permissible in exceptional cases [4]. Group 3: Seller Communication and Appeal Process - The Bundeskartellamt criticized the lack of clarity in Amazon's rules regarding price caps and notifications to sellers, making it difficult for them to predict when their offers might be limited or removed [5]. - Amazon has the option to appeal the decision within one month to the Federal Court of Justice, and the agency has coordinated with the European Commission on enforcement of the Digital Markets Act [5]. Group 4: Market Reaction - Following the news, Amazon's shares experienced a decline of 4.19%, trading at $223.26 [6].

Job Cuts Overview - U.S. employers announced 108,435 job cuts in January, marking a 205% increase from December and a significant rise from 49,795 cuts in January of the previous year [1][2] - This January's layoffs represent the highest monthly total since October 2025, when 153,074 layoffs were recorded [2] Sector-Specific Job Cuts - The transportation sector led with 31,243 job cuts, primarily due to UPS announcing 30,000 cuts as it reduces its operations with Amazon [6] - Technology firms reported 22,291 job cuts, with Amazon alone accounting for 16,000 of these as it reorganizes its management structure [6][11] - Healthcare companies announced 17,107 job cuts, the highest for the sector since April 2020, driven by inflation, high labor costs, and lower reimbursements from Medicaid and Medicare [9] - Chemical manufacturers reported 4,701 cuts, largely influenced by shifts towards AI and automation at companies like Dow [10] Reasons for Layoffs - The primary reasons for layoffs included contract loss (30,784 cuts), adverse market and economic conditions (28,392 cuts), restructuring (20,044 cuts), and closings (12,738 cuts) [13] - AI was cited as a reason for 7,624 job cuts, although its direct impact remains uncertain [14] Hiring Trends - Employers announced only 5,306 hiring plans in January, the lowest for the month since tracking began in 2009, down from 6,089 in January of the previous year and 10,496 in December [14][15]

Market Overview - The S&P 500 dropped to an over two-week low, while the Nasdaq sank to its lowest level in more than two months, driven by renewed pressure on the AI theme following Alphabet's spending plans and Qualcomm's downbeat forecast [1][3] - The Dow Jones Industrial Average fell nearly 400 points, or 0.8%, to 49,113, with the S&P 500 losing 0.9% and the Nasdaq dropping 230 points, or 1% [1][3] Company-Specific Developments - Alphabet's shares fell over 3% after announcing it would double its capital expenditure this year, indicating an aggressive push in the AI sector [3][8] - Qualcomm's stock slid 8.2% after forecasting second-quarter revenue and profit below estimates, contributing to the overall market decline [3] - Microsoft and Tesla also experienced declines of 3.4% and 3.7%, respectively, as the pressure spread across tech mega-caps [3] Investment Trends - Big Tech is expected to invest more than $500 billion into infrastructure this year, raising concerns about high valuations and the timing of returns [4] - The CBOE volatility index rose 3.8 points to 20.49, reaching an over two-month high, reflecting increased market anxiety [4] Sector Performance - The S&P 500 software and services index fell 3.2%, marking a seventh consecutive session in the red and erasing approximately $830 billion in market value since January 28 [10] - Software and data services stocks, such as ServiceNow and Salesforce, saw declines of 5% and 4%, respectively, as investors reacted to disappointing earnings [6] Market Sentiment - There is a growing sentiment that rapidly improving AI tools may negatively impact demand for traditional software, leading to reduced growth expectations across the sector [7] - Amid risk-off sentiment, silver and gold resumed a decline, with silver plunging almost 13% [10][11] - The market is witnessing a rotation into cheaper, overlooked sectors, with consumer staples being the only sector trading in the green [13]

Group 1: Earnings Expectations - Amazon is expected to report fourth-quarter earnings with an earnings per share of $1.97 and total revenue of $211.33 billion [4] - Analysts anticipate Amazon Web Services (AWS) revenue to reach $34.93 billion and advertising revenue to be $21.16 billion [4] Group 2: Cloud Revenue Growth - Cloud revenue growth is a major focus, with a previous quarter growth of 20.2%, up from 18%, and analysts predicting a 21.4% growth for the fourth quarter [1] Group 3: AI Investments and Cost-Cutting - Amazon plans to increase capital expenditures on artificial intelligence, projected to hit $125 billion in 2025, while also cutting costs by laying off approximately 16,000 employees [2] - The layoffs are part of a strategy to reduce bureaucracy and enhance innovation, aiming to operate like a "world's largest startup" [3]

Banco BPM on Thursday reported a 2025 net profit that beat market expectations, as a surge in fees more then offset the impact of a decline in lending income. ...

Core Viewpoint - Amazon's stock has been trading sideways, down 3% in 2026 and 6% over the last year, with a 13% decline from its all-time high in November [1] Earnings Expectations - Earnings per share (EPS) is expected to be $1.98, a 5% increase year-over-year, and about three cents better than the previous quarter [3] - Revenue is projected at $211.46 billion, reflecting a 13% year-over-year increase [4] - Amazon Web Services (AWS) revenue is anticipated to reach $34.9 billion, a 21% increase from the same quarter last year [4] - Online store sales are expected to hit $82.3 billion, up approximately 9% [4] - Advertising revenue is forecasted to be $21.2 billion, showing significant growth from $17.3 billion in Q4 of 2024 [4] Capital Expenditure (Capex) Insights - Capex is expected to be a key focus, with projections of $34.9 billion for the quarter, up from $34.2 billion in the previous quarter [5][6] - The CFO indicated plans to spend $125 billion in 2025, with continued increases in 2026 to meet AI demand [6] Restructuring and Layoffs - Amazon announced the layoff of 16,000 employees and the closure of Amazon Fresh and Amazon Go stores, indicating potential restructuring [7] Market Sentiment and Volatility - The market is anticipating a 7% move in Amazon's stock following the earnings report, with increased volatility expected [14] - A cautious approach is being taken by investors, with some looking to buy on dips [9][13]

Market Overview - Global markets experienced a significant downturn, with major indices in the US suffering substantial losses. The Dow Jones dropped approximately 600 points, while the Nasdaq fell nearly 2% [1][2]. Stock Performance - Major technology stocks faced considerable declines, including Qualcomm (-7.58%), Oracle (-4.55%), Google (-4.51%), Amazon (-4.38%), and Tesla (-3.66%) [3]. - Alphabet, the parent company of Google, saw its stock decrease by 4% following its announcement of expected capital expenditures related to artificial intelligence, which could reach up to $185 billion by 2026 [7][8]. Commodities and Cryptocurrencies - Precious metals experienced sharp declines, with silver prices plummeting over 16% [3]. - Oil prices also fell significantly during this period [4]. - Bitcoin dropped below the $70,000 mark, settling at $67,000, indicating a loss of interest from traditional investors and a growing pessimism regarding cryptocurrencies [5]. Economic Indicators - Concerns about the labor market intensified, with US employers announcing 108,435 layoffs in January, the highest number for that month since the global financial crisis [8]. - Initial jobless claims for the week ending January 31 exceeded expectations, further contributing to a negative market sentiment [8]. - The US Bureau of Labor Statistics reported that job vacancies fell to their lowest level since September 2020 by December 2025 [9].

Group 1 - The current investment levels in technology companies are comparable to peak spending in previous cycles, indicating that the spending is not an outlier [1] - Companies like Google and Microsoft have shown accelerated revenue growth and improved margins, suggesting a positive return on investment despite initial uncertainties [2][3] - The focus of major corporate boards globally has shifted to technology investments, making it a top priority [4] Group 2 - There is a growing concern about the impact of technology on job markets, particularly for new graduates, as companies are hiring fewer employees [5][6] - The software industry is experiencing significant challenges, with companies like Workday laying off employees, which is viewed negatively by the market [7] - There is a high level of skepticism and negativity surrounding the tech sector, with many investors focusing on a few major platforms like Google, Amazon, Microsoft, and Meta as potential beneficiaries [8][9]