Group 1 - Nexperia is involved in a dispute with its Chinese unit after the Dutch government took control from its Chinese owner Wingtech on September 30 [1] - The European Commission is seeking a diplomatic resolution regarding the ownership of Nexperia [1] Group 2 - The Bank of England's upcoming decision on interest rates is highly uncertain, with a 29% chance of a rate cut indicated by money markets [2][46] - The pound has declined approximately 2.3% against the US dollar in October, marking its largest drop since July [2][46] Group 3 - The FTSE 100 and FTSE 250 indexes closed lower, down 0.4% and 0.5% respectively, but both indexes achieved monthly gains [9][33] - Pharmaceuticals, financials, and mining sectors performed well in October, supported by strong earnings from companies like HSBC and GSK [9][34] Group 4 - Capital Economics predicts that Chancellor Rachel Reeves will raise taxes by £38 billion in the upcoming Autumn Budget, following a previous £41.5 billion increase last year [6][39] - If forecasts hold, Reeves will have raised taxes by 2.3% of GDP within just over a year, surpassing the tax increases of her predecessors [5][6] Group 5 - The cocoa market is experiencing a significant drop in demand, reaching a 10-year low, as consumers react to rising prices [18][19] - Despite the current crisis, analysts suggest that the cocoa market may stabilize due to improved supply conditions anticipated from the 2025/2026 crop [20]

for a roundup of winners and losers. Let's kick things off with Mackenzie Seagalos and today's tech check. Hi there, Mac.Hey, Contessa. So, the Q3 print was all about Amazon selling the street on its AI vision and investors bought it, sending those shares surging by almost 11%. Now, CEO Andy Jasse, he pitched Amazon's strategy as simple.Own the compute backbone powering the next generation of AI companies. AWS grew just over 20%, its fastest pace in three years with Jasse saying that demand is so strong tha ...

Core Insights - Amazon's stock has increased by over 10% due to signs of reacceleration in AWS growth, driven by significant investments made over the past year and a half [2][4] - The addition of 3.8 gigawatts of power in the last year has alleviated previous limitations, enabling continued growth in AWS and enhancing its competitive position [4][6] - Amazon's retail business is also performing well, with a notable increase in everyday essentials sales, growing at over 20% [9] AWS Performance - AWS has shown signs of reacceleration, which was a key focus for analysts, and the addition of power resources is expected to support ongoing growth [2][4] - The company is enhancing its infrastructure to support new services, particularly in generative AI, which requires more computing power [4][5] - Amazon's ability to solve power limitations positions it favorably against competitors like Google and Azure, potentially attracting more businesses to its platform [7] Retail Business Insights - The retail segment is experiencing growth, with CEO Andy Jassy noting a decent start to the holiday shopping season [8][9] - The use of AI and the Rufus chatbot has led to increased engagement and revenue growth, with Rufus contributing approximately $10 billion in incremental revenue [9][10] - Amazon's approach to agentic commerce is evolving, with the integration of AI tools enhancing customer experience and engagement [10]

Core Insights - Amazon's shares are experiencing significant gains following a strong performance from its Amazon Web Services (AWS) division, which reported a 20% year-over-year growth in Q3, marking the strongest quarterly growth in three years [1] - The company's Q3 results exceeded analysts' expectations, contributing to a more than 50% increase in AMZN stock compared to its year-to-date low in April [2] Financial Performance - Bank of America has raised its price target for Amazon stock to $303, suggesting a potential upside of nearly 25% from current levels [4] - Amazon is trading at a forward earnings multiple of 33x, which is considered compelling compared to other AI beneficiaries like Nvidia, which is at about 49x [4] Market Sentiment - Options traders are optimistic about Amazon's stock trajectory, with contracts indicating potential upside to approximately $270 by January and a near-term target of $254 by November 7 [5] - Barchart has issued an overall "Buy" opinion on Amazon, noting that the stock has significantly breached the 38.2% Fibonacci retracement level, indicating bullish control [6] Analyst Ratings - Wall Street analysts have rated Amazon as a 'Strong Buy' heading into 2026, with a consensus target price of $269, indicating an additional potential upside of 10% [7][8]

Core Insights - Amazon is a global leader in e-commerce and cloud computing, with a strong presence in online retail, digital streaming, and artificial intelligence [1] - Oppenheimer maintains an "Outperform" rating for Amazon, indicating confidence in its future performance despite a recent price decrease [2][6] - Amazon's third-quarter earnings report showed a 13% after-hours stock price jump, driven by growth in AWS, advertising, and retail sectors [3][6] - The company's market capitalization is approximately $2.38 trillion, with a 52-week high of $242.52 and a low of $161.38, reflecting its market influence and volatility [4][6] - Despite the current price dip, Amazon's strong performance in key sectors suggests potential for future growth [5][6] Financial Performance - Amazon's stock price was $222.86 on October 31, 2025, with a recent price decrease of 3.23% [2] - The stock has traded between $222.84 and $228.43 on the same day, indicating resilience [2] - Today's trading volume is 93.57 million shares, showing active investor interest [4] Market Position - Amazon's main competitors include Walmart in retail and Microsoft in cloud services [1] - The extensive use of artificial intelligence has been a key factor in Amazon's growth, exceeding market expectations [3]

Core Insights - Amazon Web Services (AWS) is set to achieve its strongest growth in three years, driven by unprecedented demand from the AI industry [1] Group 1: Financial Performance - AWS reported a 20% year-over-year growth, with sales reaching $33.1 billion in the first nine months of the year [2] - The operating income for AWS increased to $11.4 billion in Q3, up from $10.4 billion in the same quarter of 2024 [2] Group 2: Market Demand and Capacity Expansion - AWS is experiencing a re-acceleration in growth, with a year-over-year increase of 20.2%, attributed to strong demand in AI and core infrastructure [3] - The company has added over 3.8 gigawatts of capacity in the past 12 months and launched a new infrastructure region in New Zealand, with three more regions planned [3] Group 3: Strategic Partnerships - AWS secured several new deals in Q3, including partnerships with AI companies like Perplexity and Cursor [4] Group 4: Competitive Landscape - Competitors in the cloud infrastructure space, such as OpenAI and Oracle, have also engaged in significant deals, including a $300 billion cloud compute agreement starting in 2027 [5] - Despite skepticism about future cloud infrastructure needs, the current market allows cloud companies to capitalize on high customer demand [6] Group 5: Investment Strategy - AWS plans to aggressively invest in capacity to meet ongoing demand, with a focus on monetizing the added capacity [7] - This investment strategy comes alongside Amazon's decision to cut 14,000 corporate jobs to reallocate resources towards its AI initiatives [7]

Core Insights - Amazon Web Services (AWS) is experiencing its strongest growth in three years, driven by unprecedented demand from the AI industry for computing power [1] - AWS reported a 20% year-over-year growth, achieving $33.1 billion in sales for the first nine months of the year, with operating income rising to $11.4 billion in Q3, up from $10.4 billion in the same quarter of 2024 [2] - AWS's CEO, Andy Jassy, highlighted the re-acceleration of growth to 20.2% year-over-year, emphasizing strong demand in AI and core infrastructure, and noted the addition of over 3.8 gigawatts of capacity in the past year [3] Business Developments - AWS secured several new deals in Q3 across various industries, including partnerships with AI companies like Perplexity and Cursor [4] - Competitors in the cloud infrastructure space, such as OpenAI and Oracle, have also engaged in significant deals, including a $300 billion cloud compute agreement set to begin in 2027, and a $30 billion annual payment from OpenAI to Oracle for data center services [5] - Despite skepticism regarding future cloud infrastructure needs, AWS is capitalizing on a market where customers are willing to invest heavily in services [6] Strategic Investments - AWS plans to aggressively invest in capacity to meet the growing demand for AI infrastructure, with Jassy stating that the company is monetizing the capacity being added [8] - This announcement follows Amazon's decision to cut 14,000 corporate jobs to reallocate resources towards its AI strategy [8]

Market Overview - The U.S. stock market is showing a mixed but generally positive picture, with major indexes attempting to recover from earlier losses, driven by strong corporate earnings, particularly in the technology sector [1][11] - The Dow Jones Industrial Average (DJIA) is up approximately 348.81 points, or 0.73%, reaching around 47,980.81, indicating a recovery [2] - The S&P 500 (SPX) is slightly down by 0.32% at 6,868.76 points, while the Nasdaq Composite (IXIC) is down 0.99% at 23,722.46 points, reflecting a divergence in market leadership [2] Upcoming Market Events - The market is anticipating a busy week ahead with numerous earnings releases and key economic data announcements [3] - Key economic indicators such as Durable Goods Orders and the Dallas Fed Manufacturing Survey are set for release, which could influence market direction [4] Corporate Developments - Nvidia (NVDA) has surpassed a $5 trillion market capitalization, highlighting its dominance in the AI sector [5] - Amazon (AMZN) shares surged by 12.5% following stronger-than-expected third-quarter sales, driven by its cloud computing business [6] - Apple (AAPL) shares rose 2% after exceeding analyst projections, with strong demand for the new iPhone 17 [7] - Alphabet (GOOGL) saw a nearly 9% increase in shares following earnings that surpassed expectations, while Meta Platforms (META) shares fell 9% due to a significant charge [8] - Eli Lilly (LLY) climbed almost 4% after strong earnings driven by its diabetes and obesity treatments [8] - Reddit (RDDT) shares rose 10.8% after reporting a 68% revenue increase [9] - Disney (DIS) shares dipped 0.8% amid a breakdown in streaming contract negotiations with Google (GOOGL) [10]

Core Insights - Microsoft has invested approximately $13-14 billion in OpenAI since 2019, acquiring a 27% ownership stake on a fully diluted basis, which reflects a significant commitment to the partnership [2][3] - OpenAI's restructuring has led to the creation of one of the largest non-profits, the OpenAI Foundation, which is capitalized with $130 billion in OpenAI stock, aimed at ensuring AGI benefits all of humanity [4][5] - OpenAI plans to allocate the first $25 billion from its foundation towards health and AI security, emphasizing the importance of these areas in the development of AI technologies [4][5] Investment and Financial Commitments - OpenAI has announced a massive commitment of $1.4 trillion in compute over the next four to five years, with significant allocations to various tech companies, including $500 million to NVIDIA and $300 million to AMD and Oracle [8][9] - The revenue-sharing agreement between OpenAI and Microsoft is set at 15%, meaning if OpenAI generates $20 billion in revenue, it would pay Microsoft $3 billion [6][9] - OpenAI's revenue is projected to grow steeply, with current estimates at $13 billion for 2025, indicating confidence in future financial performance despite high spending commitments [9][10] Market Position and Competitive Landscape - OpenAI is recognized as one of the fastest-growing companies in history, with Microsoft positioning it as the "Google of this phase shift" in technology [8][9] - The partnership has significantly contributed to Azure's growth, which saw a 39% increase in the quarter, with a $93 billion run rate, outperforming competitors like GCP and AWS [29][30] - Microsoft aims to maintain healthy operating margins while competing in a crowded cloud market, leveraging the scale of its partnership with OpenAI to enhance cost efficiency [31][32] Regulatory Environment and Challenges - Concerns have been raised about the potential for a fragmented regulatory landscape in the U.S. regarding AI, with calls for a unified federal approach to avoid complications from state-level laws [16][17] - The complexity of compliance with varying state laws poses challenges for AI companies, which could hinder innovation and competitiveness [16][17] Future Outlook and Innovations - OpenAI is focused on advancing AI capabilities, with expectations for significant breakthroughs in areas like automated scientific discovery and robotics [19][20] - The development of new computing devices and user interfaces is anticipated to enhance the integration of AI into everyday applications, potentially transforming user experiences [20][21] - The potential for OpenAI to go public is being discussed, with speculation that it could happen around 2026 or 2027, contingent on revenue growth and market conditions [15][26]

Let's start though with the results from those two tech mega caps. McKenzie Sagalas is covering Amazon stocks spike this morning. Steve Kovak has got the Apple story for us as well.McKenzie, we'll start with you on Amazon. >> Hey David. So Amazon shares are popping 12% all thanks to its cloud comeback story.AWS grew just over 20%, its fastest pace since early 2022 and beat even the most bullish Whisper numbers with 33 billion in revenue. that helped ease concerns that Amazon was slipping in the C cloud wars ...