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Jon Keegan2/6/25

Amazon racks up record sales, but sinks on lower guidance

Amazon posted a whopping $187.8 billion in sales for Q4, topping Wall Street’s expectations and growing 10% from the quarter a year earlier, which was its previous best ever.

But investors didn’t like the company’s Q1 2025 guidance of between $151 billion and $155.5 billion in revenue, below the $158.6 billion analysts were expecting, according to FactSet. The stock was recently down 3% after-hours.

Earnings per share came in at $1.86, beating estimates of $1.49. Amazon’s AWS cloud computing unit matched estimates for 19% revenue growth.

Some highlights:

- Amazon’s AWS cloud computing business saw sales of $28.8 billion.

- Advertising revenue was $17.3 billion, just under estimates of $17.4 billion.

- Capital expenditures were higher than analysts’ estimates, coming in at $27.8 billion.

- “Project Rainier: A collaboration with Anthropic using hundreds of thousands of Trainium2 chips to build the world’s largest AI compute cluster.”

For all of FY 2024, Amazon’s net income was up 89% year over year to $20 billion from $10.6 billion.

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Jon Keegan & Luke Kawa12h

Oracle jumps after Q3 results exceed expectations, boost to sales guidance

Oracle is up 5% in postmarket trading after its quarterly results and outlook gave investors reason to cheer.

The hyperscaler reported:

Sales of $17.2 billion (estimate: $16.9 billion).
Adjusted earnings per share of $1.79 (estimate: $1.70).
RPO (remaining performance obligations, or backlog) of $553 billion (estimate: $537.8 billion).

Oracle’s closely watched capex for the quarter was $18.64 billion, above analyst estimates of $14 billion.

Management also raised its sales outlook for the next fiscal year to $90 billion; analysts had expected $86.7 billion.

One year ago, management suggested that its fiscal 2027 top-line growth rate would be around 20%. And last quarter, the company said that 2027 sales would be $4 billion higher than previously expected. Putting this all together, this means Oracle’s previous 2027 sales guidance was in the neighborhood of $84.4 billion ahead of this report.

Breaking down Oracle’s cloud business:

Cloud revenue was $8.9 billion, up 44% year on year.
Cloud infrastructure revenue was $4.9 billion, up 84% year on year.
Cloud application revenue was $4 billion, up 13% year on year.

All of those figures were marginally ahead of estimates.

The cloud company’s elevated indebtedness and expected cash burn compare unfavorably to other hyperscalers, which caused markets to treat its aggressive capex plans as more risky than those of its peers. That’s been exacerbated by OpenAI, itself a cash incinerator, being the source of much of Oracle’s pipeline of future business.

Oracle’s five-year credit default swap spreads widened significantly from mid-September through late January due to this counterparty and credit risk. The company’s perceived creditworthiness recovered after announcing plans to raise money through equity, not just debt, to find its expansion plans, before CDS spreads once again blew out to their widest level since 2009.

“Oracle has been stained by the negative sentiment around OpenAI and is generally viewed as a poster child for AI Capex excess / madness and so a super squeezy rally in the stock could tell us AI Capex fears have peaked for now,” Brent Donnelly, president of Spectra Markets, wrote ahead of this release.

Oracle shares took a beating recently, as a number of analysts have lowered their price targets for the stock, which is down about 56% from its 52-week high of $345.72.

Tasha Matsumoto

Stocks close lower in volatile trading session, crude oil falls after trimming steeper losses

Stocks whipsawed as traders digested developments in the war with Iran.

Brown Bear, Katmai National Park, Alaska

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Max Knoblauch16h

Boeing faces Q1 delivery slowdown after discovering 737 Max wiring issues

Boeing shares dropped on Tuesday following the company’s announcement that it will delay some 737 Max deliveries this month after discovering scratches on wiring within the planes.

According to the plane maker, fixing the issues could take a matter of days for each plane. This could impact March and Q1 delivery figures, but Boeing doesn’t expect yearly totals to be affected.

Boeing is still producing an average of 42 737 Max planes per month, The Seattle Times reported. The FAA raised Boeing’s 737 production cap late last year.

Boeing delivered 51 commercial planes in February, its highest total for the month since 2018. The figure far exceeded the 35 deliveries for Airbus, the company’s European rival.

Boeing reworking 737 MAXs after newly disclosed issue stalls deliveries

Boeing reworking 737 MAXs after newly disclosed issue stalls deliveries

Boeing is still producing an average of 42 737 Max planes per month, The Seattle Times reported. The FAA raised Boeing’s 737 production cap late last year.

Boeing delivered 51 commercial planes in February, its highest total for the month since 2018. The figure far exceeded the 35 deliveries for Airbus, the company’s European rival.

Tehran’s Shahran oil depot burns after US and Israeli attacks. (Photo by Hassan Ghaedi/Anadolu via Getty Images)

What analysts say they’re looking for next in the oil markets

“It has the makings of a once-in-a-generation market dislocation.”

Matt Phillips16h

Deutsche Bank upgrades software stocks, sees no evidence of negative impacts from AI on sales this year

“Also, after asking various experts, generalists, Gemini, ChatGPT and Claude, we have still not come across a single Software company that expects a negative revenue effect from AI in 2026,” the strategists wrote.

Cross-Country Skiing - Milano Cortina 2026 Winter Olympics: Day 15

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