HARRISBURG, Pa. (AP) — Federal regulators will allow tech companies to effectively plug massive data centers directly into power plants, issuing a long-awaited order Thursday, as the Trump administration urges it to help the U.S. lead the world in artificial intelligence and revive domestic manufacturing. The Federal Energy Regulatory Commission's unanimous order is designed to clear up pressing issues around so-called “colocation” agreements in the nation's largest grid territory, which stretches across ...

Amazon logo on phone screen with dropping stock chart in the background. Key Points Amazon’s ongoing drop just triggered a rare RSI swing from extremely overbought levels to near-oversold levels in just two weeks - the last time this happened, the stock fell 35%. However, the company’s fundamentals, analyst support, and diversified growth engines are all as strong as ever. If there is to be a similar drop this time around, then it would be another golden buying opportunity.  Interested in Amazon.com, ...

Group 1 - The S&P 500 and Nasdaq Composite experienced gains, driven by strong performance from major tech companies, particularly Amazon, which reported significant earnings growth and saw its shares rise over 10% [1] - Apple reported impressive quarterly earnings, with strong guidance and substantial revenue growth in its high-margin services unit, suggesting potential for further share price increases [1] - Investors are encouraged to consider increasing their positions in Nike and Boeing, which have faced recent declines of approximately 7% each, despite their strong turnaround potential [1] Group 2 - Upcoming quarterly results are expected from Club names Eaton, DuPont, and Texas Roadhouse, indicating potential market movements [1] - The market has been challenging for non-tech stocks, with Jim Cramer highlighting that Nike and Boeing have been unfairly punished despite improvements in their business models [1] - A rapid-fire segment covered stocks including Chevron, Reddit, and Netflix, indicating a broad interest in various sectors [1]

Core Insights - Amazon is expected to report third-quarter earnings, with traders anticipating a significant stock price movement of about 6% in either direction by the end of the week [2][8] - The company's market capitalization of $2.4 trillion makes its stock highly influential in the U.S. equity market, with potential impacts on major indexes [3] - Amazon has been the worst-performing stock among the Magnificent Seven this year, with only a 5% increase since the start of the year [5] Earnings Report Expectations - Historically, Amazon's stock has moved an average of 4.7% following its last four earnings reports, with a notable decline of over 8% after disappointing cloud revenue growth in July [4] - The last positive earnings report was a year ago, driven by strong cloud and advertising growth [4] Business Challenges and Strategies - Amazon's retail segment is facing increased tariff costs and a cautious consumer base, while the cloud computing unit is investing heavily in data centers to support AI workloads [6][8] - The company announced a reduction of 14,000 corporate roles, part of a broader downsizing that could total up to 30,000 office jobs, nearly 10% of its white-collar workforce [7] - Infrastructure investments in the cloud exceeded $31 billion in the second quarter, about 20% more than expected, with ongoing capital expenditures anticipated to remain high [8]

Core Viewpoint - Amazon has significant growth potential despite its large market capitalization of $2.3 trillion, driven by its leadership in e-commerce and cloud computing markets [1][3][6]. Group 1: E-commerce Growth - Amazon holds a dominant share of the U.S. e-commerce market, with online sales accounting for only 16.3% of total retail sales in the U.S. as of Q2 [3]. - The shift towards digital sales presents a substantial opportunity for established leaders like Amazon, which benefits from strong network effects [4]. Group 2: Cloud Computing Potential - In cloud computing, Amazon has captured about 15% of the market, with 85% of IT spending still occurring on-premises, indicating a significant growth opportunity [5]. - The gap between the real-world value of cloud services and market reactions is expected to provide a long-term tailwind for Amazon [5]. Group 3: Long-term Investment Perspective - Despite facing increased competition in cloud computing this year, Amazon's leadership in two high-growth industries makes it an attractive option for long-term investors [6].