Capex Surge and Strategic InvestmentsThis year, Seattle-based Amazon plans to ramp up its capex to a staggering $200 billion. That’s a $70 billion increase year-over-year.This move is largely attributed to the enhancement of its AWS infrastructure and AI capabilities, Anmuth noted.Such significant investments are expected to temporarily reduce free cash flow (FCF), with projections indicating a potential FCF burn of $36 billion, according to the analyst.However, these investments are seen as necessary to bo ...

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Core Viewpoint - Amazon's stock has shown significant recovery and growth, with an 80% increase in 2023 and a further 44% rise projected for 2024 after a substantial decline in 2022 [1] Group 1 - Amazon's shares rose 80% in 2023 [1] - The company experienced a 44% increase in share value projected for 2024 [1] - In 2022, Amazon's stock lost nearly half of its value [1]

Core Viewpoint - Amazon's stock has experienced significant volatility, reaching its lowest valuation in history following the Q4 2025 earnings report, with shares down over 15% in the past month [1][3]. Valuation Analysis - Amazon's trailing price-to-earnings (P/E) ratio has dropped to approximately 29x, the lowest in its public market history, contrasting sharply with previous cycles where it often exceeded 100x [3][4]. - Historical data shows that Amazon's valuation has previously surged above 100x earnings, peaking near 350x during early growth phases and over 150x during the pandemic [4]. - The current valuation is near historical lows, last seen when Amazon was significantly smaller, indicating a potential for future multiple expansion [5][7]. Financial Performance - In Q4 2025, Amazon reported a 14% year-over-year increase in net sales to $213.4 billion, with AWS revenue rising 24% to $35.6 billion, driven by strong demand for cloud and AI services [9]. - Adjusted earnings per share were $1.95, slightly below expectations due to one-off costs [9]. Capital Expenditure Concerns - The stock has faced pressure due to guidance indicating approximately $200 billion in capital expenditures for 2026, significantly higher than 2025 levels, primarily directed towards AI infrastructure [10]. - Following the earnings report, shares fell more than 10%, leading to some analyst downgrades, although Wall Street maintains a broadly positive outlook with price targets suggesting over 30% upside [10].

Amazon ( AMZN ) is now trading at the cheapest level in 5 years with a rough start to 2026 so far as the stock has fallen around 8% at the time of writingMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specificall ...

Core Insights - Salesforce Inc. has recently implemented workforce cuts affecting fewer than 1,000 employees across various teams, including marketing, product, and data, although the company has not publicly confirmed these layoffs [1] - The company has appointed six new or promoted executives to lead different business units, replacing five high-profile leaders who have departed since December [2] - The layoffs are part of a broader trend in the tech industry, where many companies are reducing staff while increasing their reliance on artificial intelligence, which is expected to replace some routine jobs [3] Financial Performance and Analyst Outlook - The upcoming earnings report is anticipated on February 25, 2026, with an EPS estimate of $2.69, down from $2.78 year-over-year, and a revenue estimate of $11.18 billion, up from $9.99 billion year-over-year [5][7] - The stock currently holds a Buy Rating with an average price target of $325.24, although it is trading near its 52-week low of $185.73, having decreased by 2.49% to $189.20 in premarket trading [6] - Recent analyst actions include Piper Sandler lowering its target to $280.00, Barclays raising its target to $338.00, and RBC Capital raising its target to $290.00, indicating varying outlooks on the stock's future performance [7] Valuation and Market Position - Salesforce's current P/E ratio stands at 25.9x, indicating a premium valuation compared to peers [7] - The company is rated weak in value (score: 7.28), strong in growth (score: 65.51), and strong in quality (score: 73.45), reflecting a healthy balance sheet despite underperforming in momentum (score: 7.09) [7]

Amazon ( AMZN ) closed Q4’25 in a position of strength with a backlog of $244b for AWS, supporting the firm’s substantial capital budget of $200b for FY26. With AWS continuing to show momentum, inclusive of adoption of its custom silicon, I believe Amazon’s positioning in theMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent ov ...

Core Viewpoint - Federal Reserve Governor Stephen Miran challenges the prevailing belief that American consumers bear the burden of trade tariffs, suggesting that the actual burden may not be shouldered by Americans as commonly thought [1][2]. Group 1: Tariff Burden Analysis - Miran indicates that the accounting treatment of tariffs may obscure the true burden, as it may appear that a U.S. entity is bearing the cost when it is actually a U.S. subsidiary of a foreign company [2]. - This perspective contradicts the common view among economists that tariffs lead to higher prices for American consumers [2]. Group 2: Economic Impact of Tariffs - Miran believes that many experts are gradually aligning with his view that the impact of tariffs on the economy has been "quite muted" over time [3]. - Federal Reserve Chair Jerome Powell previously stated that tariffs are likely to result in a "one-time" price increase, with the effects on goods prices expected to peak and then decline, assuming no new major tariff increases occur [3].

Microsoft Corp. (NASDAQ:MSFT) has seen its fundamental strength reach elite levels, with its quality score on the Benzinga Edge rankings jumping from 79.51 to 90.08 week-on-week.Operational Excellence In An AI Arms RaceImproved quality score—a metric evaluating operational efficiency and financial health—reflects MSFT’s position as a more disciplined spender in the current $700 billion AI infrastructure race.In contrast, peers are seeing their free cash flow trends slide toward negative territory. Amazon re ...

Core Insights - The global consumer electronics sector has seen a decline of 10% since the end of September, while memory makers, including Samsung Electronics, have surged approximately 160% [1][17] - Current valuations in the market largely assume that supply disruptions will normalize within one to two quarters, but there are concerns that this tightness may persist longer [2][17] Industry Trends - Memory chip shortages and rising prices are frequently mentioned in earnings reports, indicating a significant impact on various companies [17] - Companies like Qualcomm and Nintendo have experienced stock declines due to concerns over memory constraints affecting production and profitability [5][17] - The demand for memory chips is being exacerbated by massive AI infrastructure spending, shifting production capacity towards high-bandwidth memory [8][17] Market Dynamics - Spot prices for DRAM have increased by over 600% in recent months, despite weak demand for end products like smartphones and cars [11][17] - Memory chip makers have emerged as significant winners in the tech sector, with companies like SK Hynix, Kioxia Holdings, and Nanya Technology seeing stock increases of over 150% to 400% since the end of September [12][17] - The current memory cycle is described as a "supercycle," breaking traditional boom-and-bust patterns, with no signs of demand momentum softening [9][13][17]