Shares of Nvidia (NASDAQ: NVDA) were sharply higher on Friday, climbing as much as 7.8%. As of 1:02 p.m. ET, the stock was still up 7.3%. The catalyst that sent the artificial intelligence (AI) chipmaker higher was the results of one of its big tech colleagues, which bodes well for Nvidia's future. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Nvidia. Chips ahoy Amazo ...

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].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

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]

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]

Core Insights - Cloudflare (NET) is expected to report fourth-quarter 2025 results on February 10, 2026, with anticipated revenues between $588.5 million and $589.5 million, reflecting a year-over-year growth of 28.3% [1] - The company forecasts non-GAAP earnings of 27 cents per share for the fourth quarter, indicating a growth of 42.1% from the same quarter last year [2] Revenue Expectations - Cloudflare's revenue growth is likely driven by enterprises shifting from traditional cybersecurity solutions to a zero-trust approach, alongside an increase in high-value contracts [3] - The company has seen significant global expansion, generating approximately 50% of its 2024 revenues outside the United States, which has diversified its clientele and contributed to revenue growth [4] Customer Growth - As of the end of the third quarter 2025, Cloudflare had 295,552 paying customers, marking a 33.4% year-over-year increase [4] - The number of large customers contributing $100,000 in annual revenues rose to 4,009, a 23% increase year-over-year, with 297 new large customers added in the third quarter of 2026 [5] AI Contributions - Growth in Cloudflare's Workers AI inference and AI Gateway requests is expected to positively impact revenue, along with the rising adoption of its Model Context Protocol server [6] Challenges - The company faces challenges in closing large deals due to geopolitical and macroeconomic pressures, which may negatively affect revenue recognition and top-line growth [7] - Customer caution in IT spending and vendor onboarding, influenced by recent U.S. policy measures, is also impacting Cloudflare's performance [7] Earnings Prediction - Current analysis indicates that Cloudflare's earnings may not exceed expectations, as it holds a Zacks Rank 3 and an Earnings ESP of -1.62% [8]

Group 1 - The core viewpoint of the article is that Zhejiang University Netnew (600797.SH) is collaborating with Huatuo Cloud Data on the HiAgent platform, focusing on applications in the education and enterprise sectors [1] - The current business volume of the HiAgent platform is relatively small, and its future development trend remains uncertain, which will not have a significant impact on the company's operating performance [1] - The company has maintained a long-term partnership with Alibaba in the IDC and cloud services sectors [1]

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].

Group 1 - Companies are expected to spend $650 billion on capital expenditures (CapEx) this year, raising questions about how this will be allocated and the implications for growth [1] - Supply constraints are highlighted as a key issue, with companies lacking the capacity to grow faster, which justifies the increase in CapEx [2][3] - Google is noted for its significant growth in cloud revenue, which increased by 48%, while its infrastructure side grew over 50%, indicating a strong return on its CapEx investments [2] Group 2 - TSMC is under pressure to ramp up its own CapEx to meet the demand from hyperscalers, as current CapEx levels may not suffice to service the highlighted needs [4] - There are concerns regarding NVIDIA's potential upside due to the current media landscape and CapEx increases, suggesting limitations on growth expectations [5] - The ongoing rate of CapEx for public cloud businesses has surged to 3 to 4 times the baseline of approximately $4,050 billion, raising questions about sustainability if revenue does not keep pace [7] Group 3 - Oracle faces scrutiny regarding its CapEx strategy, particularly in relation to its open air initiatives and the potential customer base for Amazon's projected $200 billion in CapEx [8] - The distinction between training and inferencing workloads is critical, as training represents a sunk cost that may not yield immediate revenue, complicating the monetization of cloud investments [8] - Clarity on these issues is expected to emerge over the next two to three months as the market evolves [9]

US stocks jumped on Friday, set to rebound from a week-long tech bruising as Wall Street reassessed worries about the impact of AI disruption and the risks of hefty Big Tech spending. The Dow Jones Industrial Average (^DJI) led the way higher, surging over 1.5%, or more than 700 points. The S&P 500 (^GSPC) rose 1%, while the Nasdaq Composite (^IXIC) added roughly 0.9%, as the indexes began retracing sharp closing losses. Wall Street is looking to end the week with a bounce back, as Big Tech CEOs and ana ...