Get them here FREE<\/a>.<\/p>\nHowever, the operational story held. Operating margins beat expectations at 13.1% vs. Street’s 11.7%, AWS grew 28% YoY (its fastest growth in 15 quarters), and Amazon’s chips business cleared a $20 billion annual revenue run rate. The panel host noted Amazon trades “about as cheap as you can” at 11 to 12 times EBITDA, adding, “I don’t know why the stock is lower here.”<\/p>\n
One caller offered a thesis worth chewing on: Amazon “is the only of the Mag Seven, the only one that has a blue-collar workforce that has logistics business that could seriously benefit from AI efficiencies.” On the enterprise side, Amazon Copilot seats grew to 20 million from 15 million. You can read the full release on the company’s 8-K filing.<\/p>\n
Microsoft: A Quiet Step Back <\/p>\n
Microsoft went the other direction. CapEx dropped to $31.9 billion, “lower than what analysts were anticipating and down from last quarter, fueling speculation that Microsoft is curbing to Wall Street pressure.” Azure still posted 40% growth (39% constant currency), the AI run rate hit $37 billion, up 123%, and commercial RPO nearly doubled to $627 billion.<\/p>\n
The complication is structural. Microsoft’s OpenAI relationship is in question following termination of their exclusive agreement, which had been a centerpiece of the Azure AI thesis. Investors took notice. MSFT shares fell 5.52% on Thursday, while Polymarket traders pegged a same-day decline at 0.988 probability.<\/p>\n
Which Strategy Wins? <\/p>\n
The panel framed it cleanly. Amazon is absorbing margin and balance-sheet pain to lock in compute supremacy, with landmark deals including approximately 2 GW of Trainium capacity for OpenAI and up to 5 GW for Anthropic. Microsoft is signaling discipline, returning capital, and protecting its 19.99% operating income growth.<\/p>\n
The shared worry voiced on the panel was that eventually “it’ll just be a little too much debt” restricting traditional shareholder returns. For now, retail sentiment is leaning Amazon’s way, with Reddit’s bullish reading climbing to 60 by Thursday morning. Whether that conviction survives the next four quarters of free cash flow compression is the trade.<\/p>\n
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The analyst who called NVIDIA in 2010 just named his top 10 AI stocks <\/p>\n
This analyst’s 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Quick Read Amazon (AMZN) CEO is spending aggressively to secure AI infrastructure dominance despite 77% CapEx growth that…\n","protected":false},"author":2,"featured_media":24696,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[321,420,7829,9572,320,7828,16740],"class_list":{"0":"post-24695","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-microsoft","8":"tag-amazon","9":"tag-azure","10":"tag-azure-ai","11":"tag-free-cash-flow","12":"tag-microsoft","13":"tag-microsoft-ai","14":"tag-operating-margins"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/24695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=24695"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/24695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/24696"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=24695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=24695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=24695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}