Amazon's (NASDAQ: AMZN) earnings report on Thursday sent the stock lower, worsening an already difficult 2026 for the stock. Shares are now down more than 10% year to date. Investors were digesting the company's mind-boggling guidance for 2026 capital expenditures of about $200 billion. These aggressive investments will be driven, in large part, by the company's effort to support fast-growing demand for its cloud computing business, Amazon Web Services (AWS). But should the stock really be selling off bec ...

Group 1 - The fourth quarter earnings season is ongoing, with significant results from major companies like Alphabet, Amazon, AMD, Qualcomm, and Palantir [1] - As of February 6, 59% of S&P 500 companies have reported their fourth quarter results, with analysts estimating a 13% increase in earnings per share, marking the 10th consecutive quarter of annual earnings growth for the index [2][4] - Analysts initially expected an 8.3% increase in earnings per share for the fourth quarter, a decrease from the previous quarter's 13.6% growth rate, but have since raised expectations, particularly for tech companies [4] Group 2 - Major capital expenditures by Big Tech are influencing the AI trade, with ongoing themes from 2025, such as artificial intelligence and economic policies, continuing to impact investor sentiment [5] - Upcoming earnings reports are anticipated from companies including Coca-Cola, Spotify, Robinhood, Lyft, Ford, Rivian, Moderna, Airbnb, and Coinbase [6]

Core Viewpoint - The NFL is exploring partnerships with non-traditional media companies to sell live game rights, indicating a shift towards digital platforms in response to changing media consumption habits [1][2]. Group 1: NFL's Strategy - NFL Media chief Hans Schroeder stated that the league is open to discussions with various media companies, both large and small, to understand potential partnerships for live game broadcasts [1][2]. - The NFL previously sold a week one game to YouTube for approximately $100 million, showcasing a willingness to experiment with digital platforms [2]. - The shift towards streaming has positioned digital platforms as significant competitors to traditional broadcast TV, which has historically been the NFL's primary distribution method [2][3]. Group 2: Market Dynamics - The emergence of large digital platforms capable of reaching broadcast-level audiences has created more options for the NFL in terms of media partnerships [3]. - The NFL aims to evaluate all available options to determine the best model for its fans and teams moving forward [2].

Investors were watching closely when Amazon (NASDAQ: AMZN) released its latest financial report after the market close on Wednesday. As one of the "Big Three" cloud providers and a force in artificial intelligence (AI), the company is among several bellwethers of what's happening in the space. Furthermore, what's happening at one company can offer additional insight into a competitor's results, providing greater context. Amazon's results sent the stock reeling but provided an unexpected tailwind for Alph ...

Big Tech is getting hammered during their earnings season. Software and tech stocks are getting hit in general—and I'm buying into the software meltdown for the record—but specifically for our hyperscalers, it's beenNewsletter Author | Investment Advisor | Top 5% of Experts on TipRanks | Long Signal, Short Noise | The Macro Obsession newsletter is a weekly brief on current events and trends in finance, tech, and the real economy. I am a macro-oriented and data-driven investor who obsesses over connecting do ...

Core Insights - The Dow Jones Industrial Average has reached a historic milestone by surpassing the 50,000 mark for the first time, marking a significant achievement in its approximately 130-year history [1][25]. Historical Context - The Dow was established in 1896 with 12 industrial stocks and has evolved to include 30 members, reflecting changes in the economy over time [2][4]. - The index has seen various milestones, including breaking 1,000 in 1972, 5,000 in 1995, 10,000 in 1999, 20,000 in 2017, and 30,000 in 2020, with the latest milestone of 50,000 reached in 2026 [6][9][12][16][19][25]. Sector Representation - The index has adapted to include companies from growing sectors, notably technology, which now comprises seven significant stocks, highlighting its increasing importance in the market [3][23]. - The selection of stocks for the Dow is governed by a committee that evaluates a company's reputation, long-term growth, and relevance to investors, while also considering sector representation [4][5]. Recent Developments - The recent rally in the Dow, which saw an increase of over 1,100 points, was largely driven by investor enthusiasm surrounding artificial intelligence and the performance of major technology stocks, referred to as the "Magnificent Seven" [22][25]. - Notable changes in the index include the replacement of Intel with Nvidia, reflecting Nvidia's leadership in AI, and the addition of Sherwin-Williams, which replaced Dow Inc. [26][27].

Amazon - Amazon plans to spend $200 billion this year on data centers, chips, and other equipment, leading to an over 8% drop in its stock, marking the largest decline since April of the previous year [1][2] - The company's operating income is projected at $21 billion, which is below consensus expectations, raising concerns about the trade-off between capital expenditures and profitability [1][2] - Analysts note that Amazon's capital expenditures are significantly higher than its peers, which may lead to negative free cash flow, but the company has historically delivered strong ROI despite similar cycles in the past [2][4] Cryptocurrency - Bitcoin experienced a volatile week, dropping nearly 13% before rebounding by about 10%, reflecting ongoing instability in the market influenced by geopolitical tensions [1][3] - The cryptocurrency market is characterized by fear, uncertainty, and doubt, with traders attempting to buy the dip amid fluctuating narratives about Bitcoin's value as a safe haven [1][3] Roblox - Roblox reported a 55% year-on-year growth in bookings, with 140 million daily active users, and a significant increase in engagement levels [2][3] - The company is focusing on expanding its user base, particularly among users aged 18 and up, which is growing at over 50% year-on-year [3][4] - Roblox is leveraging AI to enhance user experiences and improve safety measures, aiming to create a more engaging platform for its diverse user base [3][4] Affirm - Affirm's stock fell about 6% despite reporting results that beat estimates, with some analysts expressing concerns over a conservative outlook [4] - The company is experiencing significant growth with its Affirm card, which has seen a fourfold increase compared to the rest of the business [4] - Affirm's CEO emphasized the importance of transparency and affordability in their offerings, aiming to replace traditional credit cards with their debit card powered by Affirm [4] Warner Music Group - Warner Music Group's shares rose 5% following a 10% increase in its first-quarter revenue, driven by growth in digital and expanded rights and licensing revenue [7][8] - The company is utilizing AI to automate marketing efforts across its extensive catalog, aiming to increase efficiency and value in the music industry [7][8] - Warner Music Group believes that the value of music is currently undervalued and is focused on transitioning to licensed models to enhance revenue generation [8]

Group 1 - Major companies such as Amazon, UPS, and Dow Chemical have announced large-scale layoffs, with total job losses expected to exceed 52,000, adding uncertainty to the U.S. economy [2] - The layoffs are a necessary correction to the "overexpansion" during the pandemic, as companies adjust to a return to normal consumer behavior and a slowdown in online growth [2][3] - UPS's CFO stated that layoffs are directly related to a decrease in package volume for Amazon, indicating a need to adjust scale [2] Group 2 - Companies are strategically responding to the pressures of technological revolution, particularly through the adoption of AI to reduce labor costs [3] - There is a clear trend of reallocating resources from traditional roles to future-oriented technology sectors, as seen in companies like Amazon, Microsoft, and Nike [3] - The macroeconomic environment, characterized by high interest rates and trade policy uncertainties, is prompting companies to streamline operations and focus on high-margin core businesses [4] Group 3 - Despite the layoffs, the overall scale of job cuts is not unusually high compared to pre-pandemic levels, with the U.S. unemployment rate remaining relatively low at 4.4% [4] - Long-term unemployment is becoming a significant issue, with the average duration of unemployment extending to 24.4 weeks as of December 2025, compared to 19.4 weeks in 2022 [4] - The current layoffs reflect the U.S. economy's attempt to balance inflation control with growth, highlighting the need for companies to successfully navigate this transition and create competitive new jobs [4]

Core Viewpoint - The Super Bowl LX is generating significant attention and investment opportunities through various sectors, particularly gaming, technology, and advertising, as companies leverage the event for marketing and engagement strategies [1] Group 1: Gaming Sector - The Amplify Video Game Leaders ETF (GAMR) includes key players like Electronic Arts Inc. (EA), which has transformed its Madden NFL franchise into a cultural phenomenon, with annual Super Bowl simulations gaining popularity [1] - EA's stock represents 2.6% of GAMR, while Microsoft Corp. (MSFT) and Sony Group Corp. (6758) are also significant holdings at 9.3% and 4.6% respectively, highlighting the competitive landscape of gaming hardware [1] - Roblox Corp. (RBLX) is expanding the Super Bowl simulation trend into game streaming, with notable engagement on platforms like YouTube, where creators are simulating NFL seasons [1] Group 2: Halftime Show and Technology - The Apple Music Super Bowl Halftime Show featuring Bad Bunny will prominently display Apple Inc. (AAPL), which holds a 15% position in the Vanguard Information Technology ETF (VGT) [1] - Sony's music distribution arm, The Orchard, plays a role in the halftime show, while Live Nation Entertainment Inc. (LYV) is involved through co-production, with Live Nation representing 10.4% of the MUSQ Global Music Industry Index ETF [1] Group 3: Advertising and Social Media - Early ad releases on social media are becoming a trend, with Comcast Corporation's (CMCSA) Xfinity commercial featuring the original Jurassic Park cast, representing 4.8% of the Communication Services Select Sector SPDR Fund (XLC) [1] - Alphabet Inc. (GOOGL) is showcasing its Gemini AI in a new commercial, holding a combined 20.9% of XLC through its Class A and Class C shares [1] - Amazon.com Inc. (AMZN) has also released an early Alexa spot, making it the largest holding in the Consumer Discretionary Select Sector SPDR Fund (XLY) at 23.4% [1]

Artificial intelligence remains the defining investment theme of this cycle, and few developments reinforce that view more clearly than the latest spending plans from Amazon ((AMZN) and Alphabet ((GOOGL). Both companies recently updated investors on their capital expenditure outlooks, signaling an aggressive push to expand data center capacity and AI infrastructure. Combined, the two technology leaders are expected to invest close to $400 billion this year to support the next phase of data center expansion. ...