J P M O R G A N North America Equity Research 06 February 2026 Overweight AMZN, AMZN US Price (05 Feb 26):$222.69 ▼Price Target (Dec-26):$265.00 Prior (Dec-26):$305.00 Internet - Large Cap / Mid & Small Cap Doug Anmuth AC (1-212) 622-6571 douglas.anmuth@jpmorgan.com Bryan M. Smilek (1-212) 622-8886 bryan.smilek@jpmorgan.com J.P. Morgan Securities LLC Key Changes (FYE Dec) | | Prev | Cur Δ | | --- | --- | --- | | Adj. EPS - 26E ($) | 11.74 | 9.25 -21.2% | | Adj. EPS - 27E ($) | 13.45 | 11.19 -16.8% | Quarter ...

Amazon beat reported mixed financial results in the fourth quarter on Thursday, with revenue surpassing Wall Street estimates, while earnings slightly missed projections During Amazon’s earnings call, CEO Andy Jassy touted the e-commerce segment’s ability to deliver more essentials to more customers as key growth drivers during the fourth quarter. “For the third year in a row, globally, in 2025, we achieved both our fastest-ever delivery speeds for Prime members, while also reducing our cost to serve,” ...

Core Insights - Walmart has achieved a market valuation of $1 trillion, becoming the first retailer to reach this milestone, with its shares rising nearly 26% over the past year, placing it alongside major tech companies like Nvidia and Alphabet [1] Company Performance - Over the past decade, Walmart's stock has surged 468%, significantly outperforming the S&P 500's 264% gain, attributed to its dual strategy of appealing to both higher-income and lower-income customers [2] - In the last five years, Walmart has expanded its online marketplace to over 500 million items, introduced one-hour delivery, launched Walmart+ to compete with Amazon Prime, and developed a $4 billion advertising business that has improved margins [2] Technological Investments - Walmart has made significant investments in AI, focusing on supply-chain automation to enhance the freshness of produce, speed up deliveries, and improve inventory forecasting, which has contributed to beating US same-store sales estimates for 15 consecutive quarters [3] - The retailer's early and aggressive AI investments have generated investor optimism, particularly as grocery shopping increasingly shifts online [3] Market Position - Walmart captures $1 out of every $4 spent on groceries in the US, positioning itself favorably amid economic challenges faced by low and middle-income households due to inflation and a cooling job market [4] - The company has been recognized as a significant player in the tech sector, being added to the Nasdaq-100 Index, which includes the most valuable non-financial companies [8] Future Outlook - John Furner, the new global CEO, faces the challenge of accelerating technology investments in an AI-driven market while competing against rivals like Amazon, Aldi, and Costco [6] - Analysts predict Walmart could approach a $2 trillion market capitalization in the coming years, driven by its strong performance in food retailing and ongoing technological advancements [11]

Core Insights - Walmart has achieved a market valuation of $1 trillion, becoming the first retailer to reach this milestone, reflecting its transformation into a technology-driven commerce giant [1][10] Group 1: Financial Performance - Over the past decade, Walmart's stock has surged 468%, significantly outperforming the S&P 500's 264% gain, showcasing the effectiveness of its dual-customer strategy targeting both high- and low-income shoppers [2] - Walmart has consistently beaten U.S. same-store sales estimates for 15 consecutive quarters, indicating strong operational performance [5] Group 2: Digital Transformation - Walmart has expanded its digital marketplace to over half a billion items and introduced one-hour delivery and Walmart+ to compete with Amazon Prime, marking a significant digital business transformation [3][4] - The company has invested billions in artificial intelligence for supply-chain automation, improving inventory forecasting and enhancing delivery speed, which has contributed to its operational edge [4][6] Group 3: Competitive Landscape - Walmart is intensifying its competition with Amazon by integrating AI into its shopping tools and has partnered with OpenAI and Google for this purpose [6] - The retail environment remains challenging due to inflation and economic pressures on U.S. households, particularly affecting low- and middle-income earners [9] Group 4: Leadership and Strategy - The milestone of reaching a $1 trillion valuation coincides with John Furner taking over as Walmart's global CEO, emphasizing a continued focus on technology investments [8]

Amazon has agreed to pay $309 million to settle a class action over returns, after customers alleged that they kicked off product returns but were wrongly denied refunds—or got hit with charges anyway, Reuters reported. The plaintiffs’ lawyers told U.S. District Judge Jamal Whitehead the deal delivers more than $1 billion in total value. That includes over $600 million in individual refunds already secured and roughly $363 million in non-monetary fixes meant to tighten Amazon’s return-and-refund machinery. ...

Walmart’s paid membership program continued to see double-digit growth in January and ended the month with 28.4 million members, a Morgan Stanley survey found, Seeking Alpha reported Monday (Feb. 2).By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content ...

Core Points - Amazon has agreed to pay $309 million to settle a class action lawsuit regarding incorrect denial of refunds for product returns [1] - The lawsuit, filed in 2023, alleged that Amazon charged consumers for properly returned items or failed to provide timely refunds [2] - Amazon has also agreed to over $600 million in individual refunds and non-monetary relief to improve its return and refund practices [3] - The company denied any wrongdoing in the settlement [3] - An internal review in 2025 identified issues with a small subset of returns, leading to the issuance of refunds for those cases [4] - In a separate case, a federal judge rejected Amazon's attempt to dismiss a lawsuit regarding excessive pricing by merchants during the pandemic [5] - Additionally, Amazon agreed to a $2.5 billion settlement with the Federal Trade Commission over misleading practices related to its Prime program [6]

Core Insights - Netflix's streaming service has reached a record-high of 325 million subscribers, significantly outpacing competitors like Amazon Prime and Disney+ [1][3] - Despite this success, Netflix's stock price has decreased by 36% from its mid-2025 peak, raising concerns about the valuation of its maturing business and the impact of its planned $82 billion acquisition of Warner Bros. Discovery [2][9] Subscriber Growth and Competition - Netflix continues to lead the streaming market with 325 million paying subscribers, while Amazon Prime and Disney+ have 200 million and 131.6 million subscribers, respectively [3] - The company is innovating with new pricing structures, including a low-cost subscription tier at $7.99 per month, to attract a broader audience [4] Advertising Business Momentum - Netflix's advertising revenue has shown remarkable growth, doubling year-over-year in 2024 and exceeding $1.5 billion in 2025, although it still represents a small portion of the total revenue of $45.2 billion [6] - The advertising business is expected to continue growing, especially with the addition of premium content and live sports [5][14] Acquisition Plans - Netflix announced plans to acquire Warner Bros. Discovery, which holds valuable franchises and could significantly enhance its advertising business [8] - Regulatory concerns may arise regarding the competitive implications of this acquisition, as Warner is a major player in the streaming market [9] Financial Performance and Valuation - In 2025, Netflix reported earnings of $2.53 per share, resulting in a price-to-earnings (P/E) ratio of 33, which is comparable to the Nasdaq-100 average of 32.6 [10] - Wall Street estimates suggest earnings could grow to $3.12 per share in 2026, leading to a forward P/E of 26.6, indicating potential for stock appreciation [11][13] Future Outlook - Management anticipates the advertising business will double in size again this year, and Netflix is committed to outspending competitors on content to attract new subscribers [14] - The recent decline in stock price may present a buying opportunity for long-term investors, despite potential volatility related to the Warner Bros. acquisition [13][14]

Core Insights - The Robinhood Investor Index reveals the sectors and specific stocks that investors are focusing on as they enter 2026, highlighting trends in institutional and retail investment behavior [1][2]. Group 1: Top Stocks and Sectors - Nvidia (NVDA) is identified as a leading investment opportunity, particularly in the large-cap electronic technology sector, due to its strong position in the AI ecosystem with its GPUs and CUDA software [3][4]. - Amazon (AMZN) ranks highly among retail stocks, showcasing its diverse operations beyond e-commerce and cloud computing, including streaming, advertising, and robotics, which positions it well for growth amid economic challenges [6][7][8]. - Tesla (TSLA) remains popular among retail investors despite facing declining sales in its EV business, attributed to increased competition and brand challenges; its stock is characterized by high volatility and speculative interest [9][10][12]. - Apple (AAPL) is viewed as a stable investment in the technology sector, leveraging its large customer base for consistent profitability, making it a reliable choice for investors seeking safety [13][15]. - Ford (F) is highlighted for its attractive dividend yield of 4.5% and a low forward P/E ratio of 9, appealing to value investors looking for passive income and reasonable pricing [16][17].

Group 1 - The article discusses the concept of "quality stocks" as a safer investment option during economic uncertainty, highlighting that the definition of quality can vary among experts [1][2] - Fidelity has identified several quality stocks that are considered good investment options, emphasizing the importance of understanding what constitutes a quality stock [2][4] - Financial experts suggest that quality stocks typically exhibit strong fundamentals, consistent performance, and solid management teams, which may not always be quantifiable [3] Group 2 - Fidelity's quality stock picks include Costco Wholesale (COST), Verisk Analytics (VRSK), Amazon (AMZN), Alphabet (GOOGL), Meta (META), Netflix (NFLX), and Roblox (RBLX), each noted for their strong market positions and customer trust [4] - Costco is recognized for its great prices and low market volatility, while Verisk Analytics is noted for high revenue and low volatility in the insurance sector [4] - Amazon's competitive edge comes from its subscription services and cloud division, while Alphabet and Meta leverage their extensive user bases and self-reinforcing business models [4]