Core Viewpoint - Amazon's stock experienced a nearly 10% drop following a slight profit miss and higher-than-expected capital expenditures guidance, despite a positive Q4 earnings report [1]. Group 1: Financial Performance - Amazon plans to spend approximately $200 billion in 2023, primarily on AI infrastructure, significantly exceeding analysts' expectations of around $146 billion [1]. - Amazon Web Services (AWS) generated $35.58 billion in revenue for Q4, surpassing estimates and indicating that the company's investments are yielding returns [4]. - The company's advertising business reported $21.32 billion in revenue for Q4, contributing to its overall financial strength [6]. Group 2: Market Position and Valuation - Amazon's stock is currently down nearly 20% from its year-to-date high, with its relative strength index (RSI) indicating deeply oversold conditions [2]. - Despite a 40% year-on-year increase in AWS backlog to $244 billion, Amazon shares are trading at less than 30 times forward earnings, making them relatively inexpensive compared to other major tech companies [7]. - Analysts suggest that Amazon has the potential to expand its cloud capacity more than its competitors in the next two years, enhancing its attractiveness as a long-term investment [5]. Group 3: Investor Sentiment - Wall Street remains bullish on Amazon shares following the Q4 earnings report, indicating continued confidence in the company's future performance [8].

Core Viewpoint - Amazon's investment in Anthropic has significantly increased in value, indicating a potentially lucrative strategic technology investment for the company [1][2]. Investment Details - Amazon holds $45.8 billion in convertible notes and $14.8 billion in nonvoting preferred stock in Anthropic, totaling a stake worth $60.6 billion [1][8]. - The company has invested $8 billion in Anthropic since late 2023, resulting in a seven-fold increase in value [2]. - Anthropic's recent funding rounds have raised its valuation from $61.5 billion in March to $183 billion in September, with discussions for a new round potentially pushing it to $350 billion [3]. Financial Impact - Amazon's convertible notes convert to preferred stock as Anthropic raises additional capital, allowing Amazon to gain valuable stock with each funding round [7]. - In 2025, conversions generated approximately $5.6 billion in recognized gains for Amazon, with an additional $7.2 billion upward adjustment to "other income" in Q3 due to Anthropic's valuation increase [7]. - The value of Amazon's Anthropic stake rose from $38.5 billion in Q3 to $60.6 billion in Q4, with expectations of a further $15 billion gain in Q1 as some notes convert to nonvoting preferred stock [8]. Valuation Methodology - Amazon's valuations of its Anthropic stake are based on "significant judgment" and classified as "Level 3" assets, relying on unobservable inputs rather than market prices [9]. - This classification is typical for startup investments, which lack regularly traded securities on liquid public markets [9].

Group 1 - The Dow Jones Industrial Average surpassed 50,000 points for the first time, gaining over 1,000 points in a single day, which is an increase of more than 2.2% [1] Group 2 - Chip stocks experienced a surge due to expectations of increased spending on AI data centers by Amazon and Alphabet, with shares of Nvidia, Advanced Micro Devices, and Broadcom rising by more than 7% [2] - Amazon's stock fell nearly 7% after announcing a plan to increase capital expenditures by over 50% this year in response to the AI race, following a similar announcement from Alphabet [2]

US stocks rebounded on Friday from a weeklong tech bruising as Wall Street reassessed worries about the impact of AI disruption and the risks of hefty Big Tech spending. The Dow Jones Industrial Average (^DJI) led the way higher, surging by about 2.5%, or more than 1,200 points, to climb ahead of the 50,000 level for the first time. The S&P 500 (^GSPC) rose 2% in its best session since May of last year. The Nasdaq Composite (^IXIC) added about 2.1%, as the indexes bounced back from Thursday's sharp closi ...

Amazon's (AMZN) stock came under pressure after the company released its fourth-quarter earnings, sliding more than 11% in pre-market trading. While Amazon’s Q4 results were mixed, they were not disastrous. The real reason for the selloff was Amazon’s announcement that capital expenditures (capex) will rise sharply in 2026. Management revealed that Amazon expects to invest roughly $200 billion in capex through 2026, with the bulk of that spending directed toward Amazon Web Services (AWS), its cloud compu ...

Core Insights - The four hyperCAPEX companies spent $128 billion on CAPEX in Q4, marking a 12% increase from Q3 and a 65% increase year-over-year [1] - Corporate CAPEX in Q4 reached $40.47 billion, up 12% from Q3 and 61% from the previous year, with total CAPEX for 2025 at $134.74 billion [4] - AWS CAPEX for Q4 was $31.7 billion, representing 78% of Amazon's overall CAPEX, and increased by 12% from Q3 and 55% year-over-year [4] - AWS's total CAPEX for 2025 was $96.5 billion, accounting for 68% of Amazon's overall CAPEX spend [4] - Amazon plans to invest approximately $200 billion in capital expenditures, primarily in AWS, due to high demand [5] - In 2025, AWS added more data center capacity than any other company globally [5] - Over the last twelve months, AWS added 3.99 gigawatts of power, which is double the capacity added in 2022 [7] - AWS expects to double its power capacity again by 2027, having added 1.2 gigawatts in Q4 alone [7] - The operating cash flow for 2025 is projected at $139.5 billion, with a CAPEX forecast of $200 billion for 2026 [8]

Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and a better-than-expected growth in its prominent cloud computing unit.But shares fell 11% in after hours trading ... ...

Core Insights - Big Tech companies are significantly increasing their capital expenditures (capex) focused on AI infrastructure, with total spending projected to exceed $630 billion [2][3][6] Group 1: Capital Expenditure Projections - Alphabet plans to double its capex to nearly $185 billion by 2026 [2] - Amazon aims to allocate $200 billion to capex, surpassing Wall Street estimates [2] - Meta's full-year capex is expected to rise to as much as $135 billion [2] Group 2: Focus on AI Infrastructure - The majority of Big Tech's spending is concentrated on scaling AI compute rather than diversifying into various strategic investments [3] - Current AI infrastructure spending is comparable to the GDP of countries like Sweden and Israel, highlighting the scale of investment [4] Group 3: Historical Context and Demand - The current AI build-out is unprecedented in scale, with companies like Amazon, Meta, and Microsoft experiencing record demand backlogs [6] - Microsoft's backlog has doubled to $625 million, driven by demand from OpenAI [6] Group 4: Infrastructure Bottlenecks - The AI industry's bottleneck has shifted from chip shortages to a lack of physical infrastructure, indicating a need for more data centers [7] - Analysts suggest that future data center build-outs could occur in local areas, transforming existing structures into data centers [5]

Shares of Nvidia (NASDAQ: NVDA) were sharply higher on Friday, climbing as much as 7.8%. As of 1:02 p.m. ET, the stock was still up 7.3%. The catalyst that sent the artificial intelligence (AI) chipmaker higher was the results of one of its big tech colleagues, which bodes well for Nvidia's future. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Nvidia. Chips ahoy Amazo ...

During a podcast interview with ex-FBI chief Dan Bongino earlier this week, President Donald Trump sent a shockwave through the 2026 midterm landscape, calling for the federal government to “take over” and “nationalize” voting—traditionally a state-level power.The push is part of the administration’s broader Make Elections Great Again (MEGA) Act, a legislative centerpiece aimed at imposing strict federal standards on voter ID, mail-in ballots, and citizenship verification.Polymarket traders are skeptical Tr ...