“We’re starting to see, in some cases, a discipline check that investors are putting on companies.” A week that saw the Federal Reserve cut interest rates and dozens of US companies report earnings nevertheless boiled down to a single theme: artificial intelligence. Most Read from Bloomberg Results from US technology giants showed that the world’s biggest corporations are still pouring billions into AI infrastructure, cheering investors and bolstering the case for betting on the technology. The S&P 500 I ...

Macro Dynamics - The Ministry of Finance and the State Administration of Taxation announced a tax policy regarding gold transactions, exempting value-added tax for members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange, effective from November 1, 2025, to December 31, 2027 [2] - A nationwide 1% population sampling survey has commenced, targeting approximately 5 million households and 14 million individuals to gather data on demographics, employment, migration, marriage, fertility, and housing conditions [3] Energy Sector - In September 2025, 7,218 new renewable energy projects were registered, including 32 wind power projects and 7,184 solar power projects, with a significant focus on distributed solar energy [6] - The completion of China's thorium-based molten salt experimental reactor in Gansu represents a significant advancement in nuclear energy technology, aiming to reduce reliance on imported uranium and enhance energy security [7] Financial Institutions - Zhejiang Wangshang Bank reported a total asset scale of 521.46 billion yuan as of the end of September 2025, marking a 10.7% increase from the beginning of the year, with a slight decrease in operating income but a 30.2% increase in net profit [9] Market Data - On October 31, U.S. stock indices collectively rose, with the Nasdaq up 0.61%, marking a 2.24% increase for the week and a 4.7% increase for October [11] - The Nasdaq China Golden Dragon Index rose by 0.53% on October 31, ending a five-month decline [12] Company Dynamics - Novo Nordisk's CEO announced that the company is nearing completion of its plan to lay off 9,000 employees as part of a global restructuring effort [14] - Meituan's flash sale reported significant sales growth on the first day of its Double 11 promotion, with nearly 800 brands seeing sales double compared to the previous year [15] - A land dispute involving Hainan Natural Rubber Industry Group's subsidiary has been reported, with local authorities intervening to maintain order following a conflict over land rights [16]

Group 1 - In 1995, China had only 3 companies in the Fortune Global 500, while the US had 151 and Japan had 149, indicating a significant gap in economic strength [2] - As of August 2024, the US remains the leader in the Fortune Global 500 with 139 companies, showcasing its long-standing economic dominance [4][6] - Walmart, Amazon, and State Grid are among the top three companies in the 2024 ranking, with Walmart generating revenue of $648.125 billion, Amazon at $574.785 billion, and State Grid at $545.9475 billion [9][11] Group 2 - Japan's presence in the Fortune Global 500 has significantly declined from 149 companies in 1995 to only 40 in the latest ranking, reflecting its economic struggles [12] - Japan's economic growth peaked in the 1980s but has since faced challenges due to reliance on traditional manufacturing and an aging population [16][19] - The decline in Japan's economic power is attributed to factors such as the bursting of the economic bubble and a lack of innovation in emerging sectors like AI and renewable energy [17][19] Group 3 - China has made remarkable progress, with a total of 133 companies, including those from Taiwan, in the Fortune Global 500, indicating a strong economic presence [21] - The increasing number of private companies like Xiaomi, Huawei, and Tencent in the rankings demonstrates the growing vitality of China's private sector [21] - China's achievements are attributed to its resilience in the face of external pressures, particularly from the US, which has attempted to hinder China's development through trade and technology wars [23][25][26]

Core Insights - Wall Street experienced a record-setting rally, with Nvidia Corp. achieving a market cap of $5 trillion, marking a historic milestone [2] - The "Magnificent Seven" tech giants, including Apple, Amazon, Alphabet, Microsoft, Meta, and Tesla, contributed to significant market gains [2] - Federal Reserve Chair Jerome Powell expressed caution regarding future rate cuts, impacting market sentiment [3] Company Highlights - **MercadoLibre Inc.** reported Q3 revenue of $7.41 billion, a 39% year-over-year increase, marking its 27th consecutive quarter of over 30% revenue growth, driven by strong performance in Brazil, Mexico, and Argentina [5] - **Microsoft Corp.** shares rose following a new agreement with OpenAI, making Microsoft a 27% stakeholder in OpenAI's public-benefit corporation, valued at approximately $135 billion, and securing a commitment for $250 billion in Azure cloud services [6] - **Joby Aviation Inc.** saw its stock surge after being named the exclusive aviation launch partner for Nvidia's IGX Thor AI platform, which is expected to enhance Joby's autonomous flight technology [7] Bearish Developments - **Meta Platforms Inc.** reported Q3 revenue of $51.24 billion, up 26% year-over-year, but missed EPS expectations due to a significant tax charge, leading to a stock sell-off [8] - **Chipotle Mexican Grill Inc.** experienced a decline in stock price after Q3 revenue fell short of estimates at approximately $3.00 billion, with only a 0.3% increase in comparable restaurant sales [9] - **Carvana Co.** posted Q3 revenue of $5.65 billion, a 55% year-over-year increase, but missed EPS expectations, causing concerns over margin pressure and stock decline [10]

META CEO Mark Zuckerberg (L) and Microsoft CEO Satya Nadella.Getty ImagesAs tech giants increase their already breathtaking spending on artificial intelligence, their respective digital advertising businesses have also gained momentum.Quarterly earnings reports this week from Meta, Amazon, Alphabet and Microsoft all showed healthy revenue on the ads front.The rising online advertising sales have allayed concerns earlier this year that economic turbulence, amplified by President Donald Trump's trade policies ...

Group 1 - The core argument of the article is that Amazon's CEO Andy Jassy justifies the layoffs as a means to strengthen the company's corporate culture and enhance team efficiency, emphasizing the need for ownership mentality and speed in decision-making without bureaucratic hindrances [2] - The context of the layoffs is part of a broader trend among major tech companies, including Microsoft, Meta, and Intel, which are also reducing their workforce while experiencing fluctuating stock prices [2] - The rise of AI is changing the landscape of talent importance, as companies are now focusing on GPU and computing power infrastructure rather than just accumulating talent, leading to a shift in how companies view their workforce [3] Group 2 - AI is becoming the new focal point for companies, with the belief that the core asset and competitive advantage will be based on AI capabilities, leading to a reduction in workforce as companies aim for higher efficiency and lower costs [3] - The increasing prevalence of AI poses a threat to many workers, particularly in the U.S. and China, as a significant number of employees are expected to transition into the service industry, with many seeking to build personal brands on social media [4] - The article warns that while many are focused on growing their follower counts, true success requires attention to the substance behind those numbers [4]

Core Viewpoint - Amazon's Q3 2025 earnings report exceeded expectations, leading to a 13.16% increase in stock price post-announcement, driven by AWS revenue growth and improvements in advertising and AI shopping assistant performance [1][2]. Financial Performance - Q3 2025 net sales reached $180.17 billion, a year-over-year increase of 13.4%, surpassing Bloomberg consensus estimates [2] - Operating income for Q3 2025 was $17.42 billion, which was 11.7% below consensus expectations due to one-time expenses, resulting in an operating margin of 9.7%, down 1.3 percentage points year-over-year [2] - Net income for Q3 2025 was $21.18 billion, with an EPS of $1.95, exceeding consensus estimates by 25.3% [2] - Q4 2025 net sales guidance is set between $206 billion and $213 billion, indicating a year-over-year growth of 9.7% to 13.4%, while operating income guidance is between $15.5 billion and $20.5 billion, reflecting a year-over-year decline of 1% to 22.6% [2]. AWS Performance - AWS revenue for Q3 2025 was $33 billion, showing a year-over-year growth of 20.2%, up from 17.5% in Q2 2025 [3] - AWS operating margin was 34.6%, reflecting a 1.7 percentage point increase quarter-over-quarter but a 3.4 percentage point decrease year-over-year [3] - Demand for the in-house chip Trainium2 is high, with revenue growth of 150% quarter-over-quarter, and future services are expected to expand to small and medium-sized clients [3]. Capital Expenditure and Capacity - Capital expenditures for Q3 2025 totaled $115.9 billion, a 77.1% increase year-over-year, with cash capital expenditures at $34.2 billion [4] - Full-year cash capital expenditures for 2025 are projected to reach $125 billion, a 60% increase, with expectations for continued growth into 2026 and a doubling of overall capacity by the end of 2027 [4] - Current capacity constraints are primarily related to power supply, with potential future shifts to chip supply issues [4]. Revenue and Profit Forecast - Revenue forecasts for 2025-2027 have been raised to $701 billion, $777 billion, and $861 billion, respectively, reflecting increases of 1.0%, 1.4%, and 0.5% compared to previous estimates [4] - Net profit forecasts for the same period have also been increased to $67 billion, $83.1 billion, and $101.7 billion, with respective increases of 1.3%, 1.1%, and 0.7% [4] - Current price-to-earnings ratios are projected at 35x, 28x, and 23x for 2025, 2026, and 2027, respectively, maintaining a "buy" rating [4].

Core Insights - Amazon experienced significant job cuts and faced concerns regarding its AI capabilities, but a strong earnings report led to a rebound in investor confidence, with shares reaching record highs [1][8]. Group 1: Job Cuts and AI Concerns - The recent layoffs of 14,000 employees raised questions about Amazon's growth and efficiency, with some analysts labeling the company as an "AI laggard" [2][3]. - Amazon's CEO Andy Jassy emphasized that the layoffs were a preemptive measure to make the company "leaner" and to streamline its culture [2][11]. Group 2: AWS Performance - Amazon Web Services (AWS) reported $33 billion in sales, marking a 20% increase, which is the fastest growth since 2022, alleviating some investor concerns [8]. - AWS has a backlog of $200 billion in contracts not yet recognized as revenue, indicating strong demand for its services [9]. Group 3: AI Developments - Amazon is making strides in AI, with its in-house AI chip, Trainium 2, becoming a "multi-billion dollar" business, and its AI shopping assistant, Rufus, projected to contribute over $10 billion in sales volume [9]. - Despite these advancements, skepticism remains regarding AWS's ability to compete with Microsoft and Google in the AI space [10][11].

Core Insights - Major US tech companies, including Google, are investing billions in AI infrastructure in India, prompting investors to seek local firms that will benefit from this investment wave [1][5] - The establishment of an AI ecosystem in India presents a significant opportunity within the country's $5.4 trillion market, which has lagged behind global equity rallies due to a lack of dedicated AI companies [2] Investment Opportunities - Investors are focusing on ancillary companies, such as equipment manufacturers and power generators, that will support the development of AI infrastructure. The data center market in India is expected to exceed $100 billion by 2027 [3] - A custom index tracking shares of 10 ancillary companies has increased over 30% since April, outperforming the benchmark NSE Nifty 50 Index during the same period [4] Major Players and Investments - Google plans to invest approximately $15 billion in an AI infrastructure hub in southern India, collaborating with local firms. Other tech giants like Microsoft and Amazon are also making substantial investments in AI and cloud computing in India [5][6] - Key beneficiaries include AdaniConneX, Bharti Airtel, and Reliance Industries, which together may represent 35%-40% of India's data center capacity by 2030 [6] Sector-Specific Insights - The electrical and power equipment sector is expected to see significant capital expenditure, with companies like Hitachi Energy India, Siemens, and ABB India being closely monitored [8] - The power sector is projected to benefit greatly from data center investments, with power costs accounting for about 40% of capital expenditure for these facilities [9] - Cooling solutions are critical due to the high energy consumption of AI workloads, with companies like Blue Star and Voltas providing necessary systems [11] Infrastructure Providers - Netweb Technologies India and E2E Networks are highlighted as key players in server and cloud infrastructure, with significant stock performance increases of 99% and 49%, respectively [12]

Core Insights - Amazon's stock is considered a smart buy due to its strong demand and growth potential, particularly in its core businesses like e-commerce and cloud computing [5][7][15] - The company's cloud-computing arm, Amazon Web Services (AWS), is experiencing significant demand, with performance obligations reaching $195 billion, up nearly 25% year-over-year [10][15] - Despite recent challenges, such as an AWS outage, Amazon's overall importance in the global market remains high, indicating resilience and ongoing relevance [3][4] Financial Performance - Amazon's market capitalization stands at $2,605 billion, with a current stock price of $244.63, reflecting a 9.77% increase [6] - AWS generated 69% of Amazon's operating income in the second quarter of 2025, highlighting its critical role in the company's profitability [7][9] - The gross margin for Amazon is reported at 49.61%, indicating strong profitability [6] Growth Potential - The demand for AWS is driven by generative AI applications, with CEO Andy Jassy noting that the segment has "more demand than we have supplied for at the moment" [10] - Capital expenditures (capex) for Amazon reached $31 billion in the last quarter, with expectations to maintain this level to meet rising demand for AI applications [14] - The company is well-positioned for continued growth, as trends indicate strong future demand for both e-commerce and cloud services [15]