24/7 Wall St. Quick Read Cloudflare signed its largest contract ever at over $100M in Q1 2025, driven by its Workers edge computing platform. Revenue growth accelerated to 31% in Q3 2025 while AWS growth slowed to 13.4%. Operating margins expanded to 15.3% from 10.6% two quarters prior as the company nears GAAP profitability. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. When we think about clo ...

Core Insights - Rohit Prasad, the executive leading Amazon's AI model development, is leaving the company at the end of the year after two years of launching the Artificial General Intelligence group [1] - Prasad was instrumental in launching the Nova family of AI models, which, while efficient, still lag behind competitors like OpenAI's GPT, Anthropic's Claude Opus, and Google's Gemini [2] - Amazon is restructuring its AI initiatives, creating a new organization under Peter DeSantis to oversee AGI, AI models, silicon chip, and quantum computing efforts [2] - Pieter Abbeel, co-founder of Covariant, will now lead Amazon's frontier AI model research team following Prasad's departure [3] - The leadership changes at AWS include several recent departures and new hires, indicating a significant shift in the company's AI strategy [3][4]

Group 1: Advertising Business - Amazon's advertising business is accelerating, climbing 24% in the most recent quarter, reaching a $70 billion run rate, with Prime Video being a key catalyst for growth as 80% of subscribers are on the ad-supported tier [1] - The advertising business has expanded from retail media ads to video ads served through Prime Video and other streaming partners [3] Group 2: E-commerce and Marketplace - The online retail business continues to produce high-single-digit revenue growth despite generating over $250 billion in annual sales, with third-party seller services showing accelerating growth, up 11% in the most recent quarter [2] - The entire ecosystem relies on Amazon's Prime subscription service, which has pushed subscription revenue 10% higher [2] Group 3: Cloud Computing - Amazon's cloud computing business, AWS, remains the most important segment, accounting for most of the operating income and achieving 20% year-over-year growth last quarter, driven by strong triple-digit revenue from AI services [7] - Management expects sales in the cloud computing segment to continue at the current pace, supported by a growing backlog that reached $200 billion by the end of the third quarter [8] Group 4: Capital Expenditures and Cash Flow - Amazon is investing heavily in cloud computing and e-commerce, spending $90 billion on capital expenditures in the first three months of the year, with full-year cash capex expected to be around $125 billion [9] - High capital expenditures have impacted Amazon's free cash flow, which fell to $14.8 billion over the trailing-12-month period, down from $47.7 billion in the previous period [10] Group 5: Future Outlook - Amazon has historically emerged stronger from investment cycles, and with a growing backlog of cloud computing contracts, investors are expected to remain confident in future cash flow recovery [11] - Amazon's current market cap of $2.5 trillion suggests that investors are expecting it to return to peak free cash flow levels, which is likely to be exceeded over time, potentially pushing stock prices significantly higher [12]

Amazon on Wednesday tapped long-time cloud executive Peter DeSantis to lead a new unit that would oversee its most advanced technologies, including artificial intelligence models, custom silicon and q... ...

The slide this month by Oracle (ORCL) and Broadcom (AVGO) has reminded investors that artificial intelligence (AI) stocks don't move up in a straight-line fashion. They may also want to consider that prior pullbacks by mega-cap AI equities have often proven to be buying opportunities. For market participants that want to eschew market-timing and stock-picking, the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) remain credible options, particularly after recent dips. Consider this: Broadcom, t ...

In Brief Amazon CEO Andy Jassy announced in a message to staff on Wednesday that longtime AWS executive Peter DeSantis will lead a new AI-focused organization within the company. This organization will be responsible for Amazon’s AI models like Nova, as well as silicon development and quantum computing, which help make AI tools faster and more efficient. DeSantis has spent 27 years at Amazon, including eight years as an SVP for AWS, the cloud provider that powers about one-third of the internet. At AWS’s r ...

Core Insights - Rohit Prasad, a senior executive overseeing Amazon's artificial general intelligence (AGI) unit, is leaving the company at the end of this year [1] - Amazon is reorganizing its AGI unit under a broader division that will also encompass its silicon development and quantum computing teams [2] - The new division will be led by Peter DeSantis, a long-time Amazon executive with 27 years of experience, currently serving as a senior vice president in the cloud unit [2]

AirTrunk is investing as much as $8 billion to scale up its capacity in Japan amid increased demand for cloud computing and AI infrastructure in the country. https://t.co/ctZCPq9b4y (Photo: Getty Images) https://t.co/3sLXXwe2PX ...

Core Insights - Amazon's AI chief Rohit Prasad is set to leave the company at the end of the year, as communicated in a memo from CEO Andy Jassy [1] Company Summary - Rohit Prasad has played a significant role in Amazon's AI initiatives, particularly in the development of Alexa and other AI technologies [1] - The departure of Prasad may impact Amazon's AI strategy and development moving forward [1]

Cathie Wood's Ark Invest is doubling down on CoreWeave (CRWV) amid a brutal selloff in AI infrastructure stocks. On Monday, the investment firm purchased over 136,000 shares of the cloud computing provider across its Ark Innovation (ARKK) and Ark Next Generation Internet (ARKW) funds, even as CoreWeave's stock plunged another 8%. Shares of the AI-focused company are now down almost 62% from all-time highs, joining a broader retreat in once-hot AI names. CoreWeave's drawdown mirrors growing investor skept ...