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 ...

Core Viewpoint - Amazon's stock has declined approximately 12% since the beginning of the year, with an 8% drop on a recent trading day, making it the worst performer in the Dow Jones Industrial Average due to disappointing profit estimates and higher-than-expected spending plans [1][1]. Group 1: Financial Performance - Amazon's shares fell after the company reported lower-than-expected profits and announced plans to invest up to $200 billion in capital expenditures this year, primarily for its cloud business and AI expansion [1][1]. - Analysts from various firms, including Oppenheimer, HSBC, and JPMorgan, have lowered their price targets for Amazon stock, reflecting concerns about the impact of increased spending on the company's financial health [1][1]. Group 2: Investment Strategy - The significant investment in AI and cloud infrastructure has raised questions among investors regarding the potential returns, with many analysts suggesting that tangible results will be necessary to regain investor confidence [1][1]. - Despite the stock's decline, some analysts, such as those from Morgan Stanley, believe Amazon could be undervalued and may emerge as a leading player in the generative AI space [1][1].

Core Insights - Amazon.com (AMZN) reported fourth-quarter 2025 earnings of $1.95 per share, a 5% increase year-over-year, but fell short of consensus estimates by 1.52% [1] - Net sales reached $213.4 billion, a 14% year-over-year increase, exceeding management's guidance and consensus estimates [2] - The company's net income was $21.2 billion, up 6% year-over-year, while operating income was impacted by special charges totaling $2.4 billion [3] Financial Performance - Product sales increased 9% year-over-year to $90 billion, while service sales rose 17% to $123.4 billion [4] - AWS revenues grew 24% year-over-year to $35.6 billion, marking the fastest growth rate in 13 quarters [5] - Operating income was reported at $25 billion, which included special charges; excluding these, it would have been $27.4 billion [3][26] Segment Performance - North America revenues rose 10% year-over-year to $127.1 billion, while international revenues increased 17% to $50.7 billion [4] - AWS segment operating income was $12.5 billion, up 17% year-over-year, with an operating margin of 35% [27] Advertising and Third-Party Sales - Sales from advertising services increased 22% year-over-year to $21.3 billion, reflecting strong performance in digital advertising [8] - Sales generated by third-party seller services rose 11.2% year-over-year to $52.8 billion, with worldwide paid units growing 12% [7] AI and Cloud Innovations - AWS's custom chips business has an annual revenue run rate of over $10 billion, growing at triple-digit percentages [16] - Amazon introduced Graviton5, its most advanced CPU for cloud workloads, which is up to 40% more price-performant than leading x86 processors [19] Delivery and Logistics - Amazon achieved record delivery speeds for Prime members, with nearly 70% more items delivered same day compared to the previous year [23] - The company expanded its ultra-fast delivery services to various regions, including India and Mexico [24] Capital Expenditures and Guidance - Amazon plans to invest approximately $200 billion in capital expenditures in 2026, primarily for AWS, a significant increase from $125 billion in 2025 [30] - For Q1 2026, Amazon anticipates net sales between $173.5 billion and $178.5 billion, reflecting 11% to 15% growth year-over-year [31]

U.S. tech giants have predicted their spending would surge this year as they double down on artificial intelligence, sharpening investor scrutiny over whether these costly bets would generate enough r... ...

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company operates with a team of experienced and qualified news journalists across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the company includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Utilization - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans to maintain best practices in content production and search engine optimization [5]

Core Insights - New tax laws significantly reduced Amazon's U.S. corporate income taxes by more than half in 2025, despite a rise in profits [1][2] - Amazon's U.S. taxes decreased from $9 billion to $1.2 billion, with federal income taxes on a cash basis dropping from $7 billion to $2.8 billion, while pretax U.S. profit increased by 44.5% to $89.5 billion [2] Tax Law Changes - The tax cuts are attributed to two changes in tax law signed by President Trump, allowing immediate deductions for certain capital investments and new domestic research [3] - Much of the equipment used in Amazon's data centers qualifies for these immediate deductions [4] Amazon's Investment and Tax Strategy - Amazon reported spending $340 billion on operating costs and capital investments in U.S. data centers in 2025 [4] - The company stated that the tax code changes encourage greater investment in the American economy, reflecting its significant U.S. investments [5] Broader Industry Context - The White House's legislation aims to incentivize domestic manufacturing with full 100% expensing for new factories and equipment [6] - AI-related infrastructure spending by Big Tech is projected to exceed $2.8 trillion through 2029, driven by early investments and rising demand for enterprise AI [6] - Citigroup forecasts capital expenditures among hyperscalers to reach $490 billion by the end of 2026 [7]

Group 1 - Jim Cramer defended Amazon.com Inc, acknowledging a fundamental shift in the market's relationship with mega-cap technology stocks [1][2] - Amazon reported fourth-quarter net sales of $213.39 billion, exceeding Wall Street expectations of $211.30 billion, but a $200 billion capital expenditure plan for 2026 caused investor concern [2][3] - Cramer highlighted Alphabet as a top pick among technology stocks, noting its increased capital spending forecast of $175 billion to $185 billion for 2026, indicating strong demand for AI infrastructure [3] Group 2 - As of Friday, Alphabet shares were down 3.09% at $321.00, while Amazon shares were down 8.34% at $204.12 [4]

Market Overview - Stocks are showing signs of gains to close out a volatile week, with Wall Street experiencing its worst selloff in months due to AI concerns leading to a rotation out of tech [1] - Nearly $1 trillion in market value was wiped out by the software selloff, affecting major companies in the sector [4] - The State Street Technology ETF is on track for its worst week since April, while the IGV ETF tracking software is having its worst week since 2008, down about 12% [2][10] Company-Specific Insights - Amazon plans to invest $200 billion in AI this year, primarily for its Amazon Web Services (AWS) cloud unit, which CEO Andy Jassy describes as an "extraordinarily unusual opportunity" [2][24] - Amazon's revenue outlook fell below Wall Street expectations, contributing to a decline in its stock price amid fears of AI disruption [24] - The growth rate for AWS has increased from mid-teens to nearly mid-20% over the last three quarters, indicating a positive return on investment in that segment [29] Industry Trends - Concerns over AI disruption have led to significant pressure on software companies like ServiceNow, Salesforce, and Microsoft, with investors questioning which businesses will be affected and to what extent [5][6][12] - The broader tech market is not far from all-time highs, but there has been considerable damage to high beta momentum stocks, which have seen a reversal in performance [8][9] - Investors are becoming more discerning about future returns, especially as companies transition from capital-light to more capital-intensive operations [16] Economic Indicators - Manufacturing activity has expanded at the fastest pace in over three years, suggesting a potential turn in the industrial cycle after a prolonged period of stagnation [19] - The dollar has fallen about 9% in the last year, with investors shifting risk hedging strategies away from the US, indicating a change in how risk is perceived [50][51]

Amazon.com Inc (NASDAQ:AMZN) reported a fourth-quarter earnings miss after yesterday's close and predicted $200 billion in capital expenditures for 2026 -- an over 50% increase from last year -- amid plans to "aggressively invest" in AI. In response, D.A. Davidson downgraded shares to "neutral" from "buy," while no fewer than 15 firms slashed their price objectives.AMZN is down 9.1% to trade at $202.51, and earlier gapped to its lowest level since May. The equity is eyeing its fourth-straight loss, with its ...

Core Viewpoint - Amazon's fourth quarter financial results were described as "healthy," but the high capital expenditure (Capex) guidance has triggered a "prove it mode" for investors, indicating a need for tangible returns before regaining confidence [1][2]. Financial Performance - Amazon's quarterly results were characterized as "solid," with positive guidance noted by analysts [2][3]. - The company is expected to experience slight cash burn due to aggressive Capex plans, estimated at $200 billion, which positions 2026 as an "AI investment year" [3][4]. Growth Opportunities - Analysts identified several areas for margin improvement for Amazon, including fulfillment, AWS, and advertising [2]. - Strong demand for AWS and AI products is seen as potentially undervalued by investors, with AWS doubling its capacity relative to 2022 and projected to double again by 2027 [2][6]. Market Position - AWS is recognized as a key growth driver, with accelerating demand for cloud and AI products, and Amazon is expected to continue gaining market share due to strong relationships and technology [3][6]. - Amazon's strategy integrates its cloud computing and eCommerce operations, aligning with long-term plans for AI and commerce [4][5]. Stock Performance - Amazon's stock has decreased by 9.3% to $201.98, with a year-to-date decline of 10.9% in 2026 [6].