📈 Amazon’s $125B AI Power Play

Good Morning…

Amazon just dropped a bombshell — and it’s not about free shipping. With record earnings, a $125 billion spending spree, and surging AI-driven growth, the retail giant is quietly transforming into the backbone of the next tech revolution.

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And now…

⏱️ Your daily briefing for Friday, October 31, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Tech Stumbles, Value Flexes

U.S. equities slipped Thursday as Big Tech earnings rattled investors.
S&P 500 −0.99% (6,822) · Nasdaq −1.57% (23,581) · Dow −0.23% (47,522)

The Big Picture:

The market did something unusual: it took a breather from its AI high and remembered that banks and health care still exist. A post-earnings slide in Meta (META) and Microsoft (MSFT) knocked the Nasdaq lower, with Nvidia (NVDA) joining the retreat on renewed U.S.–China semiconductor tension.

But value didn’t sit idle. JPMorgan (JPM), Bank of America (BAC) and Eli Lilly (LLY) carried the torch. Lilly’s earnings pop and raised guidance were a reminder: not all growth requires GPUs.

Meanwhile, political drama played in the background. President Trump’s meeting with President Xi yielded modest tariff relief and commitments on rare earths and agriculture—just enough détente to keep markets from panicking, but not enough to settle the long game.

Commodities told a calmer story: oil held steady as traders waited for clarity on global trade and holiday demand. Investors are betting the economic machine still hums—even without perfect policy harmony.

Market Movers:

• Eli Lilly (LLY) +4% — raised 2025 guidance on blockbuster weight-loss and diabetes sales. GLP-1 dominance looks durable, even under shifting tariff risks.

• JPMorgan (JPM), Bank of America (BAC) — capital flowed into financials as investors rotated from high-multiple tech to balance-sheet strength.

• Meta (META) −11% — higher AI capex spooked investors, overshadowing solid results.

• Microsoft (MSFT) −3% — same story; faster spending pace unnerved the crowd, despite robust Azure growth.

• Nvidia (NVDA) & peers — semis caught in policy crossfire again; export controls ≈ volatility tax.

What They’re Saying:

“It’s a value day… and probably a healthy thing,”
— Jed Ellerbroek, Argent Capital

WHAT WE’RE WATCHING
Events

There are no events scheduled for today.

Earnings Reports

• Today: Exxon Mobil, AbbVie, Chevron, Linde, Aon, Colgate-Palmolive, Canadian National Railway, Dominion Energy, Imperial Oil

• Monday: Palantir, Vertex, Williams, Simon Property, Realty Income, IDEXX, Ares Management, Diamondback Energy, PSEG, Franco-Nevada

MARKET INSIGHTS
Leading News 

Amazon’s AI Bet Pays Off: Cloud Surge and $125B Spending Push Signal New Growth Cycle

Why it matters:

Amazon’s (AMZN) breakout quarter marks a turning point — signaling that the world’s largest online retailer is evolving into an AI-first infrastructure powerhouse.

Zoom Out:

After months of investor hand-wringing over slowing growth, Amazon just reminded Wall Street why it’s still a market giant. Third-quarter earnings crushed expectations, with EPS at $1.95 versus $1.57 projected and revenue climbing to $180.2 billion.

Its crown jewel — Amazon Web Services (AWS) — surged 20.2% to $33 billion, its fastest growth since 2022. CEO Andy Jassy credited booming demand for AI and data infrastructure, noting Amazon added 3.8 gigawatts of new capacity in just 12 months.

Even more bullish: Amazon raised its capital spending forecast to $125 billion for 2025, up from $118B, with even higher levels expected in 2026 — much of it aimed at scaling AI data centers like the new $11 billion Project Rainier.

Key Insights:

• AI Arms Race: Amazon’s investments in models from Anthropic and tools like Bedrock and Rufus (its shopping chatbot) are paying off. Rufus has driven a 60% lift in conversions, showing early proof of AI’s retail impact.

• Resilient Core: Online store sales jumped 10%, boosted by Prime Day — a reminder that Amazon’s e-commerce engine still prints cash.

• Lean & Focused: Recent layoffs (14,000 roles) aren’t panic cuts — they’re cultural cleanup, trimming pandemic-era bloat to move faster and free up resources for innovation.

Market Pulse:

“AWS is growing at a pace we haven’t seen since 2022,” said Jassy. “Strong demand in AI and core infrastructure is fueling the next leg of growth.”

Bull’s Take:

Amazon is reasserting its dominance — not as a retailer, but as the backbone of the AI economy. With expanding margins, surging cloud demand, and $125B in capex muscle, AMZN’s next decade could look more like Nvidia’s (NVDA) than Walmart’s (WMT).

Market Stories of Note

Netflix’s 10-for-1 Split:

Netflix’s 10-for-1 stock split is a savvy move to open the door for more retail investors and inject fresh momentum into its already strong run. While it doesn’t change the fundamentals, lowering the share price from around $1,100 to $110 makes ownership more accessible and psychologically appealing—often a catalyst for renewed buying. For bullish investors, this split signals confidence in Netflix’s streaming dominance and ad-driven growth, making now a prime moment to grab a seat before the next act begins.

Coinbase’s Q3 Surge Signals Crypto Vindication:

Coinbase’s blowout third-quarter earnings mark a turning point for crypto’s mainstream comeback. Revenue surged roughly 55% year over year and profits topped $1.50 per share, proving that both retail and institutional traders are back in force. For bullish investors, COIN is evolving from a speculative crypto proxy into a legitimate infrastructure play powering the next wave of digital finance.

CRYPTO
Fear & Greed 

Headlines

• Bitcoin Price Drops Below $107k, Crypto Liquidations Tops $1.2B; Is Bull Market Over? (link)

• Coinbase Tops Expectations as Transaction Revenue Hits $1B (link)

• JPMorgan executes first fund-servicing transaction on its Kinexys blockchain (link)