The December quarter earnings season for the “Magnificent 7” has been tepid at best until now. Tesla (TSLA) closed in the red following its Q4 report, while Apple (AAPL) was flat following the confessional. Microsoft (MSFT), meanwhile, saw a nearly double-digit dip and had its worst year since 2020. Meta Platforms (META), however, stood out and soared after better-than-expected Q4 earnings and upbeat Q1 guidance. All eyes are now on the remaining constituents, with Alphabet (GOOG) (GOOGL) set to report a ...

OpenAI expects its revenue to explode over the next few years. 2026 revenue could top $25 billion, according to internal documents. That could climb to nearly $200 billion by 2030. To put that in perspective, Nvidia generated $187 billion over the last 12 months. There's no doubt OpenAI is one of the most important companies in the artificial intelligence (AI) industry. Its success (or failure) is reverberating across dozens of companies. But if it meets its 2026 revenue expectations, it could be great ne ...

Group 1: AI Integration in Amazon's Business - Amazon is expanding the role of artificial intelligence across its business, including a new generation of Alexa and AI tools in its film and television studios [1][3] - The company has launched Alexa+, a redesigned version of its voice assistant that utilizes large language models for multi-step, conversational tasks, available for Prime members and through a paid subscription for others [3][5] - Alexa+ is designed to manage planning, search, smart-home coordination, and task execution with greater contextual awareness, marking a significant update since its introduction [4][5] Group 2: Collaboration with OpenAI - Amazon is in discussions with OpenAI for specialized access to its technology, focusing on customized use of OpenAI's models rather than standard API access [6][7] - These discussions highlight the increasing value of partnerships among large technology companies to differentiate in AI performance and integration [7] - Amazon is also evaluating potential investment opportunities in OpenAI as the latter considers a major new funding round [7] Group 3: AI in Film and Television Production - Amazon MGM Studios is developing internal AI tools to accelerate television and film production, focusing on automation for editing, continuity checks, and production workflows [8][9] - The initiative is being run by a small internal team, with early testing underway and broader deployment expected later this year, emphasizing support for creative teams rather than replacement [9]

Core Insights - Amazon reported disappointing Q1 operating income estimates and a significant increase in capital expenditures for 2026, leading to a sharp decline in its stock price [1][2]. Financial Performance - For Q4, Amazon's earnings per share (EPS) were $1.95 on revenue of $213.4 billion, slightly below analyst expectations of $1.96 EPS and $211.5 billion in revenue [4]. - The AWS segment generated revenue of $35.6 billion, exceeding expectations of $34.9 billion [4]. - Advertising revenue reached $21.3 billion, while online store sales amounted to $83 billion [4]. Capital Expenditures - Amazon plans to allocate over $200 billion for capital expenditures in 2026, a significant increase from the $125 billion budgeted for 2025 [2][3]. - CEO Andy Jassy highlighted strong demand for existing offerings and opportunities in AI, chips, robotics, and low-earth orbit satellites as reasons for the increased investment [3]. Market Context - Amazon's results followed Google's earnings report, which showed better-than-expected results but also announced a substantial increase in AI spending to $185 billion for 2026 [5]. - Other tech companies like Meta and Microsoft are also increasing their AI investments, with varying market reactions [6]. Organizational Changes - Amazon is implementing job cuts of 16,000 positions to streamline operations and reduce bureaucracy [6]. - The company is closing some Amazon Fresh and Amazon Go stores, replacing them with Whole Foods locations [7].

Core Viewpoint - Amazon is set to report its fourth quarter earnings amid concerns about overspending and a potential bubble in the AI sector, following mixed reactions to earnings reports from Meta and Microsoft [1] Group 1: Earnings Expectations - Amazon is expected to report earnings per share (EPS) of $1.96 on revenue of $211.5 billion, reflecting a 5% increase in EPS and a 13% increase in revenue compared to the same period last year [3] - The AWS segment is projected to reach $34.9 billion, a 21% increase from $28.8 billion reported last year [4] - Online store sales are anticipated to hit $82.3 billion, representing an 8.9% year-over-year growth [4] Group 2: Job Cuts and Organizational Changes - Amazon announced a reduction of 16,000 jobs as part of a strategy to streamline its organization by reducing layers and bureaucracy, a trend also seen in other Big Tech companies like Microsoft and Meta [2] - The company is closing some Amazon Fresh and Amazon Go stores, replacing them with Whole Foods locations [2] Group 3: Capital Expenditures - Amazon's capital expenditures are expected to rise from $34.2 billion in Q3 to $34.9 billion in Q4, with plans to spend $125 billion in 2025 and ramping up in 2026 to meet AI demand [5] - Wall Street is closely monitoring Amazon's capital expenditures, reflecting concerns about spending in the current market environment [6] Group 4: Market Performance - Amazon's stock has decreased by 1.8%, while Microsoft has seen a slight increase of less than 1%, contrasting with Google's stock, which has surged over 60% due to the success of its Gemini 3 AI models [3]

Core Insights - Amazon reported disappointing Q1 operating income estimates and a significant increase in capital expenditures for 2026, leading to a 10% drop in its stock price [1][2]. Financial Performance - For Q4, Amazon's earnings per share (EPS) were $1.95 on revenue of $213.4 billion, slightly below analyst expectations of $1.96 EPS and $211.5 billion in revenue [4]. - The AWS segment generated $35.6 billion in revenue, exceeding expectations of $34.9 billion [4]. - Advertising revenue reached $21.3 billion, while online store sales amounted to $83 billion [4]. Capital Expenditure Plans - Amazon plans to invest approximately $200 billion in capital expenditures for 2026, a substantial increase from the $125 billion previously projected for 2025 [2][3]. - CEO Andy Jassy highlighted strong demand for existing offerings and opportunities in AI, chips, robotics, and low-earth orbit satellites as key drivers for this investment [3]. Market Context - Amazon's results followed Google's earnings report, which showed better-than-expected results and strong cloud growth, although Google also announced a significant increase in AI spending for 2026 [5]. - Other tech companies like Meta and Microsoft are also increasing their AI investments, with varying market reactions [6]. Organizational Changes - Amazon announced a reduction of 16,000 jobs to streamline its organization and improve efficiency [6]. - The company is also closing some Amazon Fresh and Amazon Go stores, replacing them with Whole Foods locations [7].

Amazon Stock: Numbers To Watch With Q4 Results Due | Investor's Business DailyBREAKING: [Eli Lilly Surges As Obesity Drugs Fuel Strong Earnings, Guidance]---Amazon (AMZN) is set to report fourth-quarter results late Thursday, with the tech giant's stock trading slightly lower vs. 12 months ago. The results will reflect a key holiday quarter for the tech giant's e-commerce business, but Wall Street's focus remains on the cloud division's AI push. Overall, analysts polled by FactSet expect Amazon's earnings t ...

If there's one thing Microsoft's recent earnings report made abundantly clear, it's that investors have zero tolerance for stalling cloud growth, given billions being funneled into AI infrastructure. ... ...

Google Stock: What Buy Side Investors Expect From Cloud Computing Business | Investor's Business DailyTRENDING: [How To Handle The Current Market]---Will Google's cloud computing business stand out again when parent Alphabet (GOOGL) reports fourth quarter earnings on Wednesday? Google stock has climbed over 8% in 2026 after surging 65% last year but EPS growth is expected to slow this year. Wall Street analyst project Google Q4 revenue of $111.3 billion, up 16%, and $2.64 EPS, up 23%. In 2026, Google…## Rel ...

Core Insights - Amazon's stock underperformed compared to big-cap peers in 2025, ending the year flat while the S&P 500 rose approximately 17% [1] - In 2026, Amazon's stock began with modest gains relative to its technical support levels [1] Business Strategy - Amazon is focusing on long-term priorities such as expanding cloud infrastructure, developing Trainium chips, launching new AWS data centers, investing in AI services, and upgrading Alexa [2] - The company is pivoting its physical retail strategy by closing or converting Amazon Fresh and Go stores into Whole Foods locations, while expanding same-day grocery delivery to leverage its Prime customer base [3] Cost Management and Layoffs - Amazon has announced another round of approximately 2,200 permanent job cuts across various states, with separations starting April 28 [5] - The company has cut tens of thousands of white-collar roles as part of a strategy to streamline operations and enhance decision-making efficiency [6] - The recent layoffs are positioned as necessary for organizational reset rather than financial distress, with Q3 net income increasing by 40% to $21 billion [9] Market Reaction and Valuation - The market reacted passively to the news of job cuts, with AMZN shares declining about 1% upon the announcement of 16,000 job cuts [10] - Amazon's trailing P/E ratio is approximately 33x, slightly above the peer group median of 32x, indicating a rich but not extreme valuation within its sector [7] Upcoming Earnings and Financial Outlook - Amazon is set to report Q4 2025 results, with consensus estimates of around $211.3 billion in revenue and $1.98 EPS, reflecting a year-over-year sales growth of 12-13% [11] - Investors are closely monitoring spending trends, with full-year 2025 capex projected near $125 billion and higher spending expected in 2026 [12] - Free cash flow fell sharply in Q3 due to AI infrastructure spending, making future funding strategies a point of interest for investors [13] Analyst Sentiment - Wall Street remains mostly positive on Amazon, with several firms raising price targets; Morgan Stanley leads with a target of $315 based on AWS growth [14] - Goldman Sachs maintains a "Buy" rating with a target of $275, emphasizing the underestimated growth potential of AWS [15]