Anthropic accused three Chinese AI companies of running 24,000 fraudulent accounts to siphon capabilities from its Claude chatbot, in what may be the largest documented case of AI model theft to date.DeepSeek, Moonshot AI and MiniMax generated over 16 million exchanges with Claude, violating terms of service and geographic access restrictions. The labs used a technique called distillation, where a weaker model trains on the outputs of a stronger one, to extract Claude’s most advanced reasoning, coding and t ...

Core Viewpoint - The Washington Supreme Court has ruled that Amazon must face lawsuits from families whose relatives committed suicide after consuming sodium nitrite purchased on its platform, overturning a lower court's decision that dismissed negligence claims [1]. Group 1: Legal Developments - The court's unanimous decision allows families to pursue negligence claims against Amazon under Washington state product liability law [1]. - The ruling indicates that the court does not consider suicide to be a superseding cause that absolves Amazon of responsibility for the sale of sodium nitrite [1]. Group 2: Allegations Against Amazon - Four families have accused Amazon of promoting sodium nitrite alongside other products that could facilitate suicides [1]. - The families claim that Amazon has been aware of the connection between sodium nitrite and suicide for years but continued to sell the product without restrictions [1].

Exclusive: Italian tax police search Amazon in new tax probe, sources say | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Flags flutter outside a distribution centre, during a strike at Amazon's logistics operations in Italy, in Passo Corese, Italy March 22, 2021. REUTERS/Remo Casilli [Purchase Licensing Rights, opens new tab]- Companies[Amazon.com Inc]FollowMILAN, Feb 12 (Reuters) - Italian tax police carried out searches on Thurs ...

February 5, 2026 07:43 AM GMT Source: Company Data, Morgan Stanley Research … As AI Productization Driving Accelerated Engagement and Monetization… In 4Q, search grew 17% y/y (150bp faster than us)… with Search's estimated 15.6% y/y ex FX growth the fastest growth in ~4 years (2Q:22) when the Search revenue base was 35% smaller than it is now. Google Cloud grew 48% Y/Y (800bps faster than expected driven by continued breadth of GCP customers for Cybersecurity, data analytics, and Enterprise AI, the latter o ...

Summary of Amazon.com Inc Conference Call Company Overview - **Company**: Amazon.com Inc (AMZN.O) - **Market Cap**: $2,419,081 million - **Current Share Price**: $222.69 - **Price Target**: $300.00 (revised from $315.00) with ~50% upside potential [1][18] Key Industry Insights - **Industry**: Internet and E-commerce - **Investment Focus**: Amazon is investing heavily in AWS, Retail, and LEO (Low Earth Orbit) satellite initiatives to drive durable growth [2][3] - **Competitive Position**: Amazon is viewed as an under-appreciated leader in Generative AI (GenAI) within its peer group [3] Financial Performance - **Revenue Growth**: AWS revenue for 2026 and 2027 is raised by 3% and 5% respectively, with expected growth rates of 26% and 25% year-over-year [4][18] - **Retail Performance**: Retail revenue guidance aligns with expectations, indicating improved efficiency [2] - **Fulfillment Efficiency**: Fulfillment costs per unit were reported to be 3% lower than estimates, showing significant improvement [12][13] Investment and Capital Expenditure - **Capex Increase**: Capex for 2026 and 2027 is raised by 19% and 20% to $205 billion and $247 billion respectively, reflecting a significant increase in investment [14][18] - **Hyperscaler Capex**: Total hyperscaler capex is projected to reach $740 billion in 2026, indicating a strong focus on infrastructure [16] Earnings and Valuation - **Earnings Per Share (EPS)**: 2027 EPS is raised by 4% to $10.41, with a target multiple adjusted to ~29X due to higher execution risk [18][19] - **Valuation Metrics**: The current valuation implies a PEG ratio of ~1.2X, which is a ~20% discount to the peer median [20][28] Risks and Considerations - **Investment Risks**: Investors are cautious about large investments without clear signals on return on invested capital (ROIC), particularly regarding the LEO initiative [3] - **Severance Charges**: A $730 million severance charge in Q4 2025 reflects part of a larger workforce reduction, impacting financials but expected to stabilize in Q1 2026 [21][30] Additional Insights - **Agentic Shopping**: Amazon's agentic shopping platform shows early signs of traction with over 300 million active customers and $12 billion in incremental GMV [13] - **Market Positioning**: Amazon is trading at a ~50% discount to its peer median PEG, suggesting potential for re-rating as growth continues [18][20] This summary encapsulates the key points from the conference call, highlighting Amazon's strategic investments, financial performance, and market positioning within the industry.

Summary of Key Points from Citi Research Call Industry and Company Focus - **Industry**: US Equity Strategy with a focus on AI and Cyclicals - **New Baskets Introduced**: - Small/Mid AI Enablers (CGRBSAIE) - Falling Dollar Beneficiaries (CGRBDUSD) [27] Core Insights and Arguments - **Barbell Strategy**: Emphasis on owning select Growth and Cyclicals to navigate a volatile bull market [4][7] - **Growth Exposure**: - Large Cap Growth is favored for its defensive nature amid macro weakness, with earnings revisions trending higher [8] - AI at a Reasonable Price (CGRBAIRP) is highlighted as a core growth basket [5][13] - **Cyclical Exposure**: - Small Cap Value is expected to show the strongest earnings growth inflection, providing a margin of safety for EPS estimates [9] - Positive ROE Trend (CGRBGROE) is recommended for core cyclical exposure [6][64] Performance Metrics - **Year-to-Date Returns**: - S&P 500 Growth: 0.50% - S&P 600 Value: 2.36% - Small Cap Value: 4.75% [11] - **Core Baskets Performance**: - Core Baskets: 3.11% - Core+ Baskets: 1.08% - Russell 3000: 1.47% [16] New Basket Details - **Small/Mid AI Enablers**: - Focus on companies under $40B market cap that are AI Enablers, with a strong revision backdrop and premium growth expectations [28][30] - **Falling Dollar Beneficiaries**: - Targeting exporters of goods and services, with a quantitative approach to identify fundamental beneficiaries [49][50] Earnings and Valuation Insights - **Earnings Growth**: - AI Enablers are expected to see premium EPS growth compared to the broader market, with a narrowing fundamental gap [36][37] - **Valuation Metrics**: - Small/Mid AI Enablers have the most attractive PEG ratio compared to their Large Cap peers [37][40] Market Trends and Risks - **Dollar Sensitivity**: US equities are not overly sensitive to dollar movements unless tied to economic breakdowns [49] - **Cyclical Recovery**: The current earnings season indicates a recovery from the EPS growth recession, with expectations for improved business models [77][78] Recommendations for Investors - **Focus on Quality**: Emphasizing operational improvements and forward-looking ROE trends in investment decisions [66][90] - **Diversification**: Consider non-US AI opportunities for thematic value and growth exposure [99][100] Notable Stocks and Ratings - **Citi Buy-Rated Stocks**: - Top expected total return stocks include Intuit Inc, Palantir Technologies Inc, and Global Payments Inc [95][96] - **Market Cap Focus**: - Stocks with significant market caps like NVIDIA Corp and Amazon.com Inc are highlighted for their growth potential [97][98] This summary encapsulates the key insights and recommendations from the Citi Research call, focusing on the US equity strategy, particularly in the context of AI and cyclical investments.

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Internet and Retail in North America, specifically on Agentic Commerce and AI platform adoption Core Insights 1. **Agentic Commerce Growth**: - Expected to reach ~$190 billion in the base case and ~$385 billion in the bull case by 2030, representing ~10% to 20% of US e-commerce [3][4] - Consumer behavior needs to evolve for further adoption, indicating a significant opportunity for growth as products improve [3] 2. **AI Platform Adoption**: - Adoption rates for ChatGPT and Gemini are nearing 50%, with 47% and 33% of US respondents using them in the past month, respectively, up from 45% and 32% in October [6][8] - Younger demographics (ages 16-34) show a strong preference for ChatGPT, with adoption rates between 65-70% [10][12] 3. **Commercial Behavior**: - Approximately 40-55% of AI users are actively researching products and comparing prices, indicating stable commercial behavior [14][15] - Retail-specific AI tools like Amazon Rufus and Walmart Sparky have lower adoption rates but show potential for growth [7][8] 4. **Purchasing Trends**: - About 30-40% of agentic users are making purchases, with ChatGPT and Gemini seeing 38% and 30% of users making purchases, respectively [21][27] - Retail-specific agents are performing at or above general platforms, suggesting a strong opportunity for growth in this segment [22] 5. **Product Categories**: - Grocery and Consumer Packaged Goods (CPG) are leading categories for purchases through AI platforms, with 50% of AI purchasers buying groceries [29][30] Additional Insights - **User Engagement**: The engagement with AI platforms is stable, with a notable increase in younger cohorts adopting these technologies faster than older users [33] - **Market Dynamics**: The report highlights the potential for retailer-specific AI tools to drive incremental growth if they can enhance agentic adoption [22][100] - **Investment Outlook**: The overall sentiment towards the internet and retail sector remains attractive, with a focus on the evolving landscape of AI and e-commerce [4][100] Conclusion - The conference call emphasizes the growing importance of AI in retail, with significant opportunities for both general and retailer-specific platforms. The trends in consumer behavior and purchasing patterns indicate a shift towards more integrated and efficient shopping experiences driven by AI technologies.

Amazon.com Inc (NYSE:AMZN) is reportedly considering a $50 billion investment in the artificial intelligence company, OpenAI. The conversations are still in the early stages and final numbers have not yet been finalized, a source told Reuters on Thursday. • Amazon.com stock is showing positive momentum. What’s the outlook for AMZN shares?A $50 billion investment would make Amazon the largest contributor to OpenAI's latest funding round.Benzinga reported earlier today that OpenAI was in discussions to secure ...

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the Internet sector in North America, focusing on major companies such as Amazon (AMZN), Google (GOOGL), and Meta (META) [1][5]. Amazon (AMZN) Core Insights - **AWS Growth**: AMZN is expected to see a durable acceleration in AWS, with a projected backlog of approximately $240 billion by the end of Q4:25, reflecting an increase of about $55 billion [2]. - **Q4:25 Growth Projections**: AWS is anticipated to grow year-over-year by 22%, indicating strong capacity growth [2]. - **Anthropic and OpenAI Contributions**: Anthropic's usage of Trainium chips is expected to generate $500 million to $600 million in monthly AWS revenue, while OpenAI's commitment could add approximately 160 basis points to AWS growth [3]. Additional Considerations - **Retail Growth**: AMZN's retail segment is also expected to benefit from AI investments, potentially leading to faster growth in gross merchandise volume (GMV) [8]. - **Capacity Expansion**: AMZN plans to double its AWS capacity by the end of 2027, with significant power additions expected in 2026 [24][25]. Google (GOOGL) Core Insights - **Search Business**: GOOGL's search business is seen as crowded, and upward revisions in its high-margin search revenue are necessary for outperformance. The company needs to achieve over 16% growth in Q4 to meet expectations [9][11]. - **Cloud Growth**: Google Cloud is projected to grow by 44% in 2026 and 36% in 2027, which is ahead of market expectations [12]. Financial Metrics - **EPS Projections**: GOOGL's current valuation is around 25 times the projected EPS of $13 for 2027, indicating a need for growth in search revenue to justify this multiple [10]. Meta (META) Core Insights - **Revenue Growth**: META is expected to achieve revenue growth of 20% in 2026 and 17% in 2027, driven by improved monetization strategies and AI investments [17]. - **Capex and ROIC**: The effective capex for META is estimated to be around $170 billion, which is significant compared to other hyperscalers. Demonstrating a return on invested capital (ROIC) is crucial for investor confidence [18]. Strategic Focus - **Efficiency and Engagement**: META is focusing on improving operational efficiency and increasing user engagement across its platforms, particularly through AI-driven initiatives [35][36]. Capacity Expansion and Market Dynamics - **Hyperscaler Growth**: The quarterly cadence of hyperscaler growth is expected to be determined by the pace of new capacity coming online. AMZN, META, and GOOGL are all expected to add significant capacity over the next two years [22][23]. - **Projected Capacity Additions**: AMZN is expected to add at least 10 GW, META around 6-7 GW, and GOOGL over 3 GW in the next 24 months [23][28]. Conclusion - The conference call highlights the competitive landscape in the Internet sector, with a strong focus on growth metrics, capacity expansion, and the impact of AI on revenue generation. Companies like AMZN, GOOGL, and META are positioning themselves to leverage these trends for future growth, while also addressing investor concerns regarding valuation and operational efficiency.

Summary of Key Points from the Conference Call Industry and Company Overview - The conference call focuses on thematic investing strategies and predictions for 2026, led by Morgan Stanley Research, emphasizing four key themes: Tech Diffusion, The Future of Energy, The Multipolar World, and Societal Shifts [3][22]. Core Themes and Predictions 1. **Key Themes for 2026**: - **Tech Diffusion**: Continued acceleration in AI capabilities and adoption across various sectors [3][35]. - **The Future of Energy**: Anticipated growth in energy demand, particularly driven by AI infrastructure, with a projected 10% increase in US energy consumption over the next decade [36]. - **The Multipolar World**: Shift towards localized supply chains and reduced dependency on global trade, with significant implications for national security and economic policies [32][34]. - **Societal Shifts**: Evolution of the Longevity theme to encompass broader societal impacts, including AI-driven job displacement and changing consumer preferences [4][38]. 2. **Performance Metrics**: - In 2025, thematic stock categories achieved an average price increase of 38%, outperforming the S&P 500 and MSCI World by 16% and 27%, respectively [8][23]. 3. **Thematic Predictions for 2026**: - Non-linear improvements in large language models (LLMs) and a systematic shortage of computational power due to rising demand [15][16]. - An aggressive US policy agenda aimed at reducing dependency on China for critical materials and enhancing domestic manufacturing capabilities [18]. - Increased focus on energy costs and their implications for data center growth and local energy policies [18]. Additional Insights - **AI and Employment**: The theme of Societal Shifts includes a focus on re-skilling initiatives and policy interventions to address job losses due to AI adoption [21][38]. - **Investment Opportunities**: The intersection of themes presents new investment opportunities, particularly in sectors that align with the evolving geopolitical landscape and technological advancements [39]. - **Regional Performance**: APAC stocks have shown strong thematic alpha across various categories, while North American stocks excelled in AI and defense-related themes [26]. Conclusion - Morgan Stanley's thematic investing framework is positioned as a powerful tool for identifying attractive investment opportunities amid market volatility, with a comprehensive focus on the interplay between technology, energy, geopolitics, and societal changes [3][8][22].