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⚡ 𝐔𝐏𝐃𝐀𝐓𝐄: $Amazon(AMZN.US) Amazon Discloses Major AI Investments in Anthropic and OpenAI

Flying wheel AWS

Good news for Microsoft shares surge, Amazon’s revenue grows, and Singapore stocks reported increase of income.

Even though today focus on Microsoft, the key events is about Core PCE & Q2 GDP, Bank of Japan Policy, and US IRAN tension. Why can’t the tension be resolved?

Few earnings TLDRs with my favorite $AXT(AXTI.US) and $Amazon(AMZN.US):

🌟🌟🌟What a breathtaking, emotionally exhausting roller coaster of a week on Wall Street. Investors have been battered by whiplash, torn between the terrifying hawkish threats of new Fed Chair Kevin Warsh and the explosive high stakes drama of Big Tech earnings.

Just when we thought we have seen it all, the grand finale dropped: $Apple(AAPL.US)and $Amazon(AMZN.US)reporting side by side, exposing a stark dramatic contrast that has left the market reeling and completely rewriting the tech playbook.

This is no longer a market where a rising tide lifts all boats. It is a brutal unforgiving arena where actual cash flow is king and any signs of weakness is punished without mercy.

Take a deep breath over the weekend and prepare your cash reserves. The highly anticipated $SpaceX(SPCX.US)quarterly report and subsequent insider share unlock are arriving next week on August 4 to 6.

More drama ahead. There is never a dull moment in Wall Street.

MSFT adding $450B in a day shows the market is rewarding actual AI revenue, not just promises. That’s why semis snapped back +8-9% — MU, SNDK, SKHY double digits means memory pricing found a floor after July’s brutal drop. Worst month since 2001 → best bounce since then. With AMZN/AAPL/META all reporting, we’re finally getting separation. Money is flowing to who can monetize AI today.

Amazon 2Q26 First Take: Heading into the print, Dolphin Research expected one thing: with Anthropic's ARR, born on AWS, rocketing, AWS should post a strong acceleration while retail just needs not to drag.

Key metrics:

a. AWS hit the fast lane: revenue of $42.2bn, growth accelerated 9ppt to 37%, an impressive pickup at scale; backlog reached ~$469bn, up 140% YoY.

More importantly, unlike many AI-driven cloud ramps that dilute margins, AWS expanded OPM by nearly 200bps QoQ to 39.4% this quarter.

b. Capex: $53bn in the quarter, vs. operating cash inflow of $45.4bn, driving FCF to -$7.7bn as operating cash can no longer fund the spend.

d. Retail: expectations were for 'no drag,' and results beat that bar by a good margin; Intl retail was softer, but its small base limits impact.

Overall, vs. Microsoft, Amazon's main blemish is that capex has outstripped operating cash flow.

a. Facilities: buildings have ~30-year lives, covering 5–6 server generations, so the annualized burden is modest.

b. Servers and networking: heavy ticket items, but procurement is timed close to go-live—only months in advance—so orders can be throttled if demand softens.

c. The company is willing to spend because it holds firm new orders in hand, allowing rapid revenue conversion as capacity comes online.

Payback on these investments is roughly 2–3 years, while servers and related gear have 5–6 years of useful life.

This mirrors our prior take on Google: invest against contracted demand to de-risk utilization, and the logic is sound.

Big picture, cloud is now accelerating sharply.

After reviewing several mega-cap prints, our focus shifts: as capex enters the heavy server and networking phase, cloud capacity will unlock quickly.

Microsoft’s record one-day market value gain highlights renewed investor confidence in AI-driven cloud growth, while the sharp rebound in memory-chip stocks suggests improving expectations for semiconductor demand after a weak July. Earnings from Amazon, Apple, and Meta showed that performance remains company-specific despite a strong technology backdrop. Overall, the market continues to reward firms demonstrating tangible AI monetization and resilient earnings, while differentiating those facing slower growth or execution challenges.

Microsoft created history by surging as high as 17% in a day with excellent earnings while Meta sunk before recovering a little at the close. Amazon then ripped after the bell with great earnings as well despite raising Capex on rising memory-chip costs. This led to the recovery of memory and chip stocks as data proves the returns of spending on AI and memory.

$Amazon(AMZN.US) Amazon reported $62.6 billion in second-quarter net income after a sharp rise in the value of its Anthropic holding added billions to the result. Profit reached $5.75 per diluted share, compared with $18.2 billion, or $1.68 per share, one year earlier. The 2026 figure included $53.4 billion in pre-tax income outside normal operations, mainly from Anthropic. Quarterly revenue was up to $200.61 billion, exceeding the $196.47 billion anticipated. Net sales increased by 20% compared to $167.7 billion posted in Q2 2025. Amazon turns AI demand into faster AWS growth and higher operating profit. The sales figures for Amazon Web Services stood at $42.2 billion, exceeding the expected StreetAccount estimates of $40.54 billion. The revenue from AWS saw an increase of 37% compared to the previous year. Advertising was reported at $19.81 billion, which is greater than the estimate of $19.43 billion and increased by 26%. “AWS is booming, growing 36.7% year-over-year in Q2, our fastest growth in 18 quarters, and our AI and Chips businesses each eclipsed run rates of more than $25 billion.” This signals absolute confidence that the company will continue to grow at a substantial pace, and for the first time in a while, raising Capex didn't result in a negative sentiment. @Captain's Treasure

$Amazon(AMZN.US) | Pivotal Research 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻𝘀 𝗕𝘂𝘆 on 𝗔𝗺𝗮𝘇𝗼𝗻.𝗰𝗼𝗺 𝗜𝗻𝗰., raises PT to $𝟯𝟯𝟯 from $𝟯𝟮𝟬

AI server giant Quanta Computer plans to raise up to US$2.2 billion (NT$71.2B) through a GDS (Global Depositary Share) offering in Luxembourg, media report, the biggest overseas fundraising by a Taiwan firm in nearly 20-years, media report, with the funds to be used for factory construction, component and materials purchases, more. $NVIDIA(NVDA.US) $Amazon(AMZN.US) $Alphabet(GOOGL.US) $Microsoft(MSFT.US) $Meta Platforms(META.US) #Quanta #AIservers

Source: Dan Nystedt

$Apple(AAPL.US)$Amazon(AMZN.US)

📊 Apple vs Amazon: A Tale Of Two Very Different Earnings Reactions

The spotlight was on these two tech giants this quarter. Even though both delivered strong numbers, the market’s response could not have been more opposite.

🍎 Apple posted another impressive set of results: record revenue of US$109.4 billion, driven by solid sales for iPhones, Macs and Services.

Its active device base also hit an all‑time high. Yet shares dropped 6.33% after hours. Investors remain cautious about how fast Apple Intelligence will actually make money and drive future growth.

📦 Amazon had the opposite reception. AWS revenue hit US$42.2 billion, up 37% year‑on‑year. Its fastest pace in 18 quarters. Combined with booming ad sales and higher operating income, investors are convinced its big AI bets are already paying off. The stock jumped 9.53% post‑market.

Key takeaway: Great earnings alone don’t always lift the share price. Markets now care most about future momentum, execution, and proof that AI spending delivers real value.

See the infographic for a clear side‑by‑side look at their results and what drove these moves!

$Amazon(AMZN.US) Amazon FY26 Q2:

Revenue: +20% to $200.6 billion 📈

Profit margin 14% (📈 +2pp)

☁️ AWS Cloud:

Revenue +37% to $42.2 billion 📈 This is the key point

Profit margin 39% (+6pp YoY)

Expenditure raised from $200 billion to $220 billion 😂

And then it went up! 📈

Key points from $Amazon(AMZN.US) earnings call: