Articles Tagged: aws

3 articles found

Oracle’s 30% Spike: Cloud Megadeals, AI Capacity, and a $455B Backlog — Does the Outlook Justify the Rerating?

Oracle rocketed after earnings despite a headline EPS and revenue miss, as investors focused on an extraordinary multiyear demand picture tied to artificial intelligence and cloud infrastructure. Remaining performance obligations surged to $455 billion, management mapped a path from roughly $10 billion of OCI revenue in FY2025 to $18 billion in FY2026 and as high as $144 billion by FY2030, and capex is set to climb about 65% to approximately $35 billion this year to build capacity. The core debate now is whether backlog quality, conversion tempo, and execution against aggressive capacity plans can sustain the stock’s rerating in the face of power, supply, and competitive constraints.

OracleORCLOCI+13 more

AI Wars in the Cloud: How Microsoft, Amazon and Google Are Repricing the Market’s Next Profit Cycle

Big Tech’s AI-and-cloud arms race is setting the tone for equity leadership as late summer trading unfolds. Microsoft, Amazon and Alphabet anchor enterprise AI budgets and control hyperscale infrastructure that Europe increasingly relies on—elevating both return potential and regulatory scrutiny. As of Monday’s session, the market tone is constructive: the S&P 500 (SPY) trades near 644.32 and the Nasdaq-100 (QQQ) around 572.23, with gold (GLD) near 310.53 and long-duration Treasuries (TLT) around 87.00, per Yahoo Finance. The Treasury curve has re-steepened at the long end even as policy remains tight: 3-month ~4.27%, 2-year ~3.68%, 10-year ~4.26%, and 30-year ~4.88% (U.S. Treasury), implying a positive 10s–2s spread of roughly +58 bps. With the effective fed funds rate steady at 4.33% and unemployment at 4.2% (FRED), investors are rewarding earnings durability, operating leverage, and clear AI monetization paths.

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Amazon’s Capex Supercycle Meets a Market with Questions: Big Profits, Thin Free Cash Flow, and a Stock Searching for Its Next Catalyst

Amazon’s latest report landed with a thud in the equity market even as the numbers dazzled on the income statement. Shares slid sharply in the sessions around the company’s Q2 FY2025 filing—down into the low $210s before stabilizing in the low $220s—despite Amazon posting $18.2 billion in quarterly net income on $167.7 billion of revenue, according to Financial Modeling Prep, citing SEC filings for the quarter ended June 30, 2025. The paradox is central: earnings are robust and margins have expanded, yet free cash flow is pinched as capital expenditures surge to fund a once-in-a-generation data center build. Investors now face a timing problem rather than a direction one. How long will this capital intensity last, and what does it mean for valuation? This article examines Amazon’s income statement quality, cash conversion, leverage, and stock behavior—synthesizing the filings with market data and key ratios—to map scenarios for the next leg.

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