Amazon.com, Inc. engages in the retail sale of consumer products, advertising, and subscriptions service through online and physical stores in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Echo, Ring, Blink, and eero; and develops and produces media content. In addition, the company offers programs that enable sellers to sell their products in its stores; and programs that allow authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content. Further, it provides compute, storage, database, analytics, machine learning, and other services, as well as advertising services through programs, such as sponsored ads, display, and video advertising. Additionally, the company offers Amazon Prime, a membership program. The company's products offered through its stores include merchandise and content purchased for resale and products offered by third-party sellers. It serves consumers, sellers, developers, enterprises, content creators, advertisers, and employees. Amazon.com, Inc. was incorporated in 1994 and is headquartered in Seattle, Washington.

Amazon appears to be a business with very strong operational efficiency, but with a noticeably more expensive valuation than most companies in the sector. A P/E ratio of 20.5 looks moderate and even slightly better than the industry average; however, P/S of 3.57 and P/B of 5.07 remain significantly above the median, which limits the potential for revaluation. It is especially important that margins and returns on capital are high: ROE of 30.5%, ROA of 15.2%, and ROI of 25.3% confirm efficient use of capital. Operating and net margins are also strong and improving compared with previous periods, which indicates increasing business efficiency. Revenue, gross profit, EBITDA, and net income are at high absolute levels and generally growing year over year, supporting the company’s fundamental value. At the same time, long-term debt has increased noticeably, and current liquidity remains only around one, so the balance sheet cannot be considered risk-free. A low debt/equity ratio softens the debt burden, but the growth in liabilities and the decline in liquidity cushion require caution. The absence of dividends means investors are relying solely on business growth and multiple expansion. P/FCF looks anomalously low, but the metric is unstable across several periods, so it is better not to interpret it as a reliable signal of undervaluation. Overall, the fundamentals point to a strong company with quality growth, but the current market valuation already reflects a significant part of these advantages. Therefore, a moderate conservative downward adjustment to the forecast is appropriate rather than an aggressive increase.

Amazon.com, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Слабый индекс, незначительно вырос. Рынок не поддерживает быков.

Weak index, slightly up. The market does not support the bulls.

Слабый индекс, незначительно упал. Рынок на стороне медведей.

Weak index, slightly down. The market is on the bears' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Средний индекс, незначительно упал. Приток средств в шорты на высоком уровне.

Medium index, slightly down. Inflow of funds into shorts at a high level.

Amazon’s strong profitability and growth are coupled with expensive P/S and P/B ratios, so the fundamentals remain solid, but the valuation calls for moderate caution.

Key Points
Amazon needs to compound earnings at 20% per year for the stock to double by 2030.
Continued growth in non-retail services, including AWS, can do the heavy lifting for earnings.
Amazon’s custom chips and operating leverage could expand margins, even with near-term capex pressure.
Amazon (NASDAQ: AMZN) stock has a real shot at doubling over the next four years. Analysts are projecting about 20% annual earnings growth, while the stock trades at 20 times forward earnings.
Using Amazon's recent share price of $251.35 on Sept. 9, 2026, 100 shares would cost $25,135. Four years of 20% earnings growth would roughly double earnings. If the stock is still trading at 20 times earnings in four years, which is a reasonable valuation, the stock could double too, turning that stake into about $50,000.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What analysts seem to be counting on is double-digit revenue growth with higher margins driving faster earnings growth. This is definitely in the cards, given management's recent comments and the sources of revenue growth.
Amazon's most profitable business just grew 37% year over year
Amazon's trailing 12-month revenue hit $775 billion in the second quarter of 2026, up 15.8% year over year. Most of Amazon's growth is coming from non-retail businesses that generate much higher margins than e-commerce. This includes revenue from advertising, seller services, subscriptions, and Amazon Web Services (AWS). Overall, revenue from all non-retail sources grew 24% year over year in Q2, reaching $124 billion.
AWS is the main engine, with its revenue rising 37% year over year in Q2 2026 to $42 billion. Growth is accelerating, with a massive $496 billion backlog to work through.
Demand for cloud services and AI compute -- especially workloads running on Amazon-designed chips -- has CEO Andy Jassy bullish about AWS's trajectory. He believes AWS could become a $1 trillion annual revenue business over time. That is significant because AWS is already doing all the heavy lifting for Amazon's profits, generating 60% of the company's operating income last quarter.
Custom chips can lower costs and improve AWS margins
Amazon's earnings rose 242% year over year in Q2 to $5.75 per share, though much of that increase came from non-operating gains tied to its investment in Anthropic.
Even so, margins are improving. Amazon's trailing 12-month operating margin climbed to 12.7%, up from 6.5% in 2023. That points to real leverage as revenue grows faster than operating expenses.
Meanwhile, demand for Amazon's custom chips (Trainium and Graviton) is now generating more than $25 billion in annualized revenue and growing at triple-digit rates. That can lower costs for customers and, more importantly, lift AWS margins.
In the 2025 shareholder letter, Jassy wrote: "At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others' chips for inference."
Amazon's earnings may not grow every quarter, as the company absorbs higher transportation costs and ramps up spending on new data center capacity.
Still, analysts see the same tailwinds and headwinds and are modeling a little over 20% annualized earnings growth over the next several years. Billionaire Bill Ackman, whose Pershing Square holds a large position in Amazon, has the same forecast. If AWS continues to track toward management's expectations, Amazon can deliver, putting the share price on track to potentially double by 2030.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $567,691!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $62,296!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $409,917!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 12, 2026.
John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

Prediction: Owning 100 Shares of Amazon Stock Will Turn $25,000 Into $50,000 by 2030

Key Points
The AI boom is real.
Customer commitments reduce near-term risk, but they don't eliminate long-term uncertainty.
The key question isn't whether AI will transform the economy. It's whether the incremental dollars invested in AI infrastructure will generate an attractive incremental return.
$760 billion. That's roughly how much Amazon (NASDAQ: AMZN), Alphabet, Microsoft, and Meta Platforms are expected to spend on capital expenditures in 2026.
The number is staggering. It's also growing rapidly. The four companies spent roughly $413 billion in 2025, meaning their combined capital spending could jump by more than 80% in just one year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Much of that spending is going toward the infrastructure needed for artificial intelligence: data centers, servers, GPUs, custom chips, networking equipment, and power capacity.
The bull case is easy to understand. AI demand is exploding and cloud providers can't build capacity quickly enough. But there is another possibility investors should consider. What if the industry is building too much capacity?
That's the risk I think investors should be watching.
The numbers are difficult to ignore
The explosion in demand for AI is real. We don't have to look far to understand that -- just think about how much we engage with ChatGPT to answer our questions, or how much we rely on Gemini or Claude to solve our work problems.
So, there is no doubt that companies must invest to provide these services. But $760 billion for four companies is staggering. In fact, Goldman Sachs forecasts AI investments will exceed $1 trillion in 2026.
And strategically, it makes sense for these big tech companies to invest heavily to gain market share in the AI computing industry. From management's perspective, sitting still could be far more dangerous than spending aggressively. So the companies are racing to build. And that's where the risk begins.
Customer commitments don't eliminate the risk
One of the strongest arguments supporting this spending is that much of the infrastructure already has customers waiting for it.
Amazon, for example, says customer commitments back a substantial portion of its 2026 AWS capital expenditure. Microsoft similarly points to its enormous customer demand.
That's reassuring. But investors should be careful about what these commitments actually mean: Customers want the capacity today. They don't necessarily tell us how much capacity those customers will want five years from now.
That's an important distinction. AI is developing extraordinarily quickly. Models are becoming more efficient. Hardware is improving. Businesses are still figuring out which AI applications will generate genuine economic value. A company can sign a multiyear commitment today and still find that its computing requirements change dramatically over time.
The same thing happened throughout previous technology cycles: Demand forecasts made during periods of rapid adoption can look very different once the technology matures.
A five-year contract may provide visibility. It doesn't provide certainty about the ultimate economics of the AI industry.
The biggest question is asset utilization
Imagine a hotel owner building 1,000 rooms because demand is growing rapidly. If occupancy reaches 95%, the investment looks brilliant. If occupancy eventually falls to 50%, the same building becomes a capital-allocation problem.
AI infrastructure works similarly. Companies are spending enormous amounts of money today to ensure they have enough computing capacity tomorrow. The crucial variable is how intensively that capacity gets used -- and at what price.
If AI demand continues to scale sustainably in the next decade, the returns could be spectacular. But if computing becomes dramatically cheaper, AI models become more efficient, or customers discover that they don't need as much infrastructure as expected, the economics could change.
But the bull case is still powerful
None of this means the AI infrastructure boom is a fake. In fact, there is considerable evidence that the demand is real.
For instance, AWS reported a 37% rise in revenue in the second quarter of 2026 to a $169 billion annualized revenue run rate, the fastest growth in 18 quarters. Similarly, Google Cloud saw revenue surge 82% to $24.8 billion in the same quarter.
In other words, these big tech companies aren't making these investments from weak financial positions. They are reinvesting their profits into the capex, expecting to generate even more profits in the future.
The only question left is whether the investment will earn a sufficiently high return over time.
What does it mean for investors?
I wouldn't bet against Amazon, Microsoft, Alphabet, or Meta simply because they're spending hundreds of billions of dollars on AI. These companies have some of the strongest balance sheets, technology platforms, and customer relationships in the world.
But I also wouldn't assume that every dollar of AI capital expenditure will automatically generate an attractive return. In other words, this is ultimately a capital-allocation issue.
Investors should ask the most important question here: Will the incremental dollars invested in AI infrastructure generate an attractive incremental return five or 10 years from now? That's the number investors can't see yet, but should closely track in the coming quarters.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $567,691!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $62,296!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $409,917!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 12, 2026.
Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

The $760 Billion AI Risk That Nobody Is Talking About. But Should.

Key Points
Nike's turnaround is progressing at a sluggish pace.
The current operating environment remains challenging, as Nike doesn't have a clear path to return to growth.
Alphabet replacing Verizon in the Dow makes Nike the lowest-weighted component.
S&P Global (NYSE: SPGI) announced that Nike (NYSE: NKE) will be removed from the S&P 100, effective Sept. 21, as part of its quarterly rebalancing. Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive will also be removed, while Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk will be added.
Here's why Nike is being removed from the S&P 100, whether it presents an ominous warning for its potential deletion from the Dow Jones Industrial Average (DJINDICES: ^DJI), and whether the blue chip dividend stock is a good buy now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Justifying Nike's S&P 100 removal
The S&P 100 isn't the 100 largest S&P 500 (SNPINDEX: ^GSPC) components by market cap. Rather, it's a curated sector that represents blue chip companies across stock market sectors and industries with a focus on megacap and large-cap behemoths.
Nike has remained in the index due to its industry leadership, not its size. Nike is now the 213th-highest-weighted company in the S&P 500. It's also the lowest-ranked component in the iShares S&P 500 100 ETF -- which uses the S&P 100 as a benchmark.
Nike's removal makes sense given that its stock price continues to fall and its industry leadership isn't what it used to be. What's more, Dell, Palo Alto, Arista, and Sandisk have all gone up so much that they are all in the top 50 in S&P 500 components by market cap. Nike's industry leadership premium no longer justifies its inclusion in the S&P 100 over companies that are worth several times more and contributing to the S&P 500's gains, whereas Nike has been a drag on the index.
As you can see in the chart, Nike is at its lowest level in more than a decade, with revenue and earnings down in recent years and operating margins plummeting from the low- to mid-high teens pre-pandemic to under 9% today. There's a laundry list of issues at Nike, including supply chain and corporate strategy blunders, slowing growth in China, tariffs, domestic consumer spending pressures, and increased competition from formidable rivals.
Even with these issues, it's important to remember that investors care more about where a company could be headed than where it has been. Investors may take one glance at the stock's price action and assume Nike is a no-brainer buy. But Nike hasn't returned to growth, and its runway for doing so is shrouded in dense uncertainty.
As part of its Win Now turnaround plan, Nike has implemented cost cuts and changed its strategy to better balance wholesale and direct-to-consumer. For fiscal 2026, which ended on May 31, wholesale revenue grew 4% year over year, with double-digit growth in North America. But many of the challenges that weighed on the business remain -- namely, competition, current operating trends in consumer discretionary spending, and the China slowdown.
Better Dow candidates
With Alphabet replacing Verizon Communications in the Dow this past June, Nike is now the lowest-ranked component in the price-weighted index -- putting it on the hot seat for the next stock most likely to be replaced. With just 30 components, the Dow is more exclusive than the S&P 100, Nasdaq-100, or the S&P 500. The Dow has become increasingly tech-stock-focused in recent years to reflect the evolving economy -- adding Nvidia and Amazon in 2024, and now Alphabet this year. However, there are massive companies that could muscle their way into the Dow, such as Broadcom, Meta Platforms, Tesla, Space Exploration Technologies, or maybe even Tesla and SpaceX combined if they merge.
Although the Dow has traditionally included industry-leading dividend-paying companies, the dividend-paying aspect of the criteria seems to carry less weight today than in years past, as Alphabet and Nvidia both yield less than 0.5%, and Amazon doesn't even pay a dividend.
Nike has raised its dividend for 24 consecutive years and yields a sizable 4.3%. But that payout could be under pressure if Nike's dividend expense begins to absorb too much of its free cash flow.
Nike will be removed from the Dow
Nike could be a good buy for investors who are confident in its brands and management's ability to execute a successful turnaround. And if the broader stock market were selling off, perhaps Nike would be given more grace.
But the major indexes, including the S&P 500 and the Dow, are hovering around all-time highs -- shortening the leash for underperforming stocks like Nike, especially now that it is closer to the median S&P 500 component weight and makes up a mere 0.4% of the Dow.
At this point, I think it's only a matter of time before Nike is removed from the storied Dow Jones index. And most investors may be better off waiting for concrete signals of a sustained turnaround before buying the stock.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Daniel Foelber has positions in Broadcom, Nike, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Arista Networks, Broadcom, Colgate-Palmolive, Honeywell Aerospace, Meta Platforms, Nike, Nvidia, S&P Global, and Tesla. The Motley Fool recommends Palo Alto Networks and Verizon Communications. The Motley Fool has a disclosure policy.

Nike Is Being Deleted From the S&P 100. Is Its Seat in the Dow Jones Industrial Average in Jeopardy?

Key Points
Some tech giants already have Anthropic stakes, which you can get exposure to by investing in those companies.
The same brokers that offered pre-IPO SpaceX shares will likely offer pre-IPO Anthropic shares.
Investors can follow where Anthropic is spending money to discover new opportunities.
Anthropic is poised to be one of the hottest IPO stocks. After Space Exploration Technologies, or SpaceX, jumped to a $2 trillion valuation, investors are wondering what's possible for Anthropic later this year.
However, you don't have to wait until Anthropic's IPO to get exposure to the stock. Investors have two creative routes to boost their exposure to the leading AI company before its shares become publicly available.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Invest in companies that have stakes in Anthropic
Some of the largest tech companies have beaten retail investors to the punch. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Salesforce (NYSE: CRM) are some of the companies that have invested in Anthropic. Their stakes in the AI giant are so large that they actually influence each company's earnings results.
Investors also have to assess the main company before following this strategy. Alphabet, Amazon, and Salesforce all have catalysts and risks that go well beyond their Anthropic stakes. This strategy offers limited exposure to Anthropic and isn't nearly the same thing as owning shares directly. However, it's something investors can do right now instead of waiting for IPO shares to become available.
Open a brokerage account with the right company
More brokerage accounts have allowed investors to buy shares of IPO companies just before their IPO dates. Many investors took advantage of this with SpaceX, and the firms that supported pre-IPO purchases of SpaceX shares are likely to do the same for Anthropic shares.
You can only buy these shares in a regular brokerage account instead of a retirement plan. Furthermore, you may have to fulfill minimum balance requirements or make a minimum purchase to receive shares. If the pre-IPO is overbooked, there is no guarantee your order will go through.
Follow Anthropic's money
The final creative way to get exposure to Anthropic is to follow its money. The company has committed more than $100 billion to Amazon Web Services, and it has also been aggressively buying AI chips.
As Anthropic's revenue grows, investors can expect more of its capital to flow into key AI infrastructure and components. For instance, the company signed a 20-year lease with TeraWulf (NASDAQ: WULF) for a 401-megawatt data center site. These types of deals may be more common as Anthropic's AI capacity needs soar.
Multiple stocks are set to benefit from Anthropic's growth. These same companies may also have exposure to rising AI capacity needs for OpenAI, hyperscalers, AI labs, and various start-ups. Buying those stocks while they have low market caps can potentially unlock the path to sizable gains.
Should you buy stock in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, and Salesforce. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Ways to Invest in Anthropic Pre-IPO

The multibillion-dollar arrangement could open the door for further expansion into the data center market for Qualcomm (NASDAQ: QCOM).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
*Stock prices used were the afternoon prices of Sept. 9, 2026. The video was published on Sept. 11, 2026.
Should you buy stock in Qualcomm right now?
Before you buy stock in Qualcomm, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Qualcomm wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Parkev Tatevosian, CFA has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Qualcomm. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Amazon Delivers Fantastic News for Qualcomm Stock Investors

Key Points
Amazon Web Services is a major cash cow for the tech megacap.
Investments in the company's data center capacity will drive further growth over time.
Looking at where the brightest investing minds in tech are putting their money is a great way to source stock ideas. One of the more impressive founders in Silicon Valley history is Peter Thiel, even if he is a controversial figure. Thiel helped found PayPal and Palantir, but now, he also runs a hedge fund. That fund, Thiel Macro, has a relatively concentrated portfolio, and as recently as the first quarter, it held no stocks at all. But in the second quarter, Thiel picked up a new set of investments, and the largest of those positions may come as a surprise: Amazon (NASDAQ: AMZN).
Amazon's AI results are starting to speak for themselves. Should you follow Thiel's lead and buy shares?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Amazon is more of an AI company than it gets credit for
The most recent information we have about Thiel Macro's holdings comes from the hedge fund's second-quarter 13F filing, which reflects the positions it had as of June 30. That's a ways back, so its positions could have shifted, but with Amazon accounting for 28% of the portfolio at the end of Q2, I think it's worth paying attention to. Outside of Amazon, the fund's other stakes were all in energy companies, so it's clear that Thiel believes that AI infrastructure and the companies delivering the electricity to power it are the places to invest right now.
Amazon operates the largest cloud computing service in the world, Amazon Web Services (AWS). It has been investing hundreds of billions of dollars into this business to build as many AI data centers as it can, as growing AI workloads have led to unprecedented demand for computing power. While AWS only made up 21% of revenue during Q2, it accounted for 60% of the company's operating profits. That's because AWS' margins are vastly superior to those of Amazon's commerce business, so even though it is a smaller segment in terms of revenues, the profits the company makes from each dollar that comes through that channel are far greater.
Furthermore, AWS' growth rate has accelerated over the past few quarters. In 2025, its growth rate hovered in the low-20% range. Now, it's up to 37%. That shows tremendous progress, and as more compute comes online, the company's data center investments will convert into revenue and profit growth.
I think that makes Amazon a great buy now, as the market is not yet pricing into the stock the amount of revenue that will start flowing into this business unit once the $220 billion in data center capital expenditures Amazon is shelling out this year comes online (plus whatever it decides to spend in 2027 and beyond).
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $567,691!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $62,296!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $409,917!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 11, 2026.
Keithen Drury has positions in Amazon and PayPal. The Motley Fool has positions in and recommends Amazon, Palantir Technologies, and PayPal. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.

Palantir Co-Founder Peter Thiel's Hedge Fund Just Made a Big Bet on This AI Stock

Key Points
Alliance is catering to the premium collectible crowd.
It's a lucrative strategy.
Shares of Alliance Entertainment (NASDAQ: AENT) popped on Friday after the distributor of music, movies, games, and toys reported broad-based gains in sales and profits.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Fans want more than just digital entertainment
Alliance's net revenue rose 8% year over year to $1.1 billion in its 2026 fiscal year, which ended on June 30.
"The market for physical entertainment continues to evolve toward premium formats, collectible products, and more specialized distribution, and those changes are playing directly to the capabilities we have built over more than three decades," CEO Jeff Walker said.
Alliance's vinyl revenue climbed 13% to $383 million, while its CD revenue jumped 25% to $156 million. At the same time, distribution deals with Paramount and Amazon MGM Studios helped to drive Alliance's physical movie revenue up by 22% to $339 million.
Alliance's collectibles business, which houses its proprietary Handmade by Robots brand, grew even faster, albeit from a smaller base, with revenue up 45% to $32 million. Meanwhile, automation investments supported a 26% rise in fee revenue, to $18.6 million, in the company's distribution and fulfillment segment.
Higher profits
Better still, Alliance is becoming more profitable as it expands its premium and exclusive content offerings. Its gross margin improved to 13.3% from 12.5% in the year-ago quarter.
Lower borrowing costs resulting from recent debt refinancing provided an additional boost to Alliance's profits.
All told, Alliance's adjusted net income leaped 24% to $23.4 million, or $0.46 per share.
Leadership is focused on high-margin categories
Looking ahead, Walker sees an opportunity for Alliance to continue expanding beyond traditional distribution services for its entertainment clients while bolstering its own profitability along the way.
"We are using the same infrastructure and relationships that support our core business to expand into higher-value collectibles, proprietary products, fulfillment services, and new capabilities such as authentication and digital product identity," Walker said. "Our focus is not simply on putting more volume through the platform, but on improving the value and economics of what moves through it."
Should you buy stock in Alliance Entertainment right now?
Before you buy stock in Alliance Entertainment, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alliance Entertainment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Alliance Entertainment Stock Surged Today

Oracle Corporation ORCL is giving cloud behemoths Microsoft Corporation MSFT and Amazon.com Inc. AMZN a run for their money, delivering strong revenues and earnings growth in its latest quarter on the back of continued cloud infrastructure strength. With momentum building, is now the right time for investors to consider ORCL? Let’s explore –
Oracle’s AI-Driven Growth Is Just Getting Started
Given its size, Oracle’s revenue growth has been exceptional. Oracle’s total revenues reached $19.3 billion in the fiscal first quarter of 2027, up 30% year over year, according to the company’s Sept. 10 press release. Oracle’s revenues improved as customers continue to migrate from on-premises software to the cloud.
To put things into perspective, Oracle’s Cloud Infrastructure (IaaS) revenues reached $7.4 billion, representing a 121% year-over-year increase, while cloud applications revenues reached $4.2 billion, up 10% year over year. This mix is promising, as Oracle’s SaaS business provides a steady recurring-revenue base, while the IaaS business positions the company to capitalize on the AI-driven growth opportunity.
Oracle remains optimistic about its revenue growth prospects. The company expects total revenues to increase by 30% to 34% in the fiscal second quarter of 2027 and reach at least $90 billion for the full fiscal year. This target seems achievable, as the company’s remaining performance obligation, or the revenues guaranteed by contracts that have yet to be recognized, reached $664 billion in the fiscal first quarter, up $209 billion year over year.
Additionally, Oracle’s non-GAAP operating income increased to $8.2 billion in the fiscal first quarter, up 31% year over year, driven mostly by strong demand in Cloud Infrastructure and Cloud Applications. With operating income growing much faster than revenues, Oracle is demonstrating that it is not only increasing sales but also becoming more profitable as it grows.
Oracle: Why ORCL Stock Is a Buy After Earnings
As reflected in the latest quarterly results, Oracle’s accelerating cloud and AI-driven growth, strong revenue visibility, and improving profitability provide the company with a solid foundation to grow. Meanwhile, AI infrastructure is becoming Oracle’s primary growth engine as demand for graphics processing units (GPUs) and cloud capacity surges.
Oracle generated $23 billion in operating cash flow in the fiscal first quarter, up 184% year over year. While free cash flow was a negative $5 billion, investors may consider this cash burn as largely attributable to the company’s heavy investments in GPUs, data centers, and AI infrastructure that could drive stronger revenue growth in the future.
Nonetheless, Oracle appears more efficient at generating profits than its industry peers. This is because Oracle’s return on equity (ROE) of 70.2% exceeds the Computer - Software industry’s ROE of 32.4%.
Image Source: Zacks Investment Research
Oracle also appears attractively valued compared with its industry peers. According to the price/earnings ratio, ORCL trades at 19 forward earnings, below the industry’s forward earnings multiple of 25.8.
Image Source: Zacks Investment Research
Therefore, Oracle’s AI-driven growth, robust cash generation, strong profitability, and attractive valuation make ORCL stock an appealing buy for growth-oriented investors. Oracle currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Is ORCL a Buy Following 121% IaaS Growth in Q1 Earnings?

Value stocks are significantly outperforming their growth counterparts this year. The Russell 1000 Value Index has returned roughly 23% year to date, compared with just about 4% for the Russell 1000 Growth Index. Meanwhile, the iShares MSCI USA Value Factor ETF (VLUE) has surged more than 47% year to date.
Some investors have favored attractively valued stocks to reduce their exposure to mega-cap concentration amid heightened market volatility. However, value stocks have also benefited significantly from the AI trade.
While investors traditionally look to growth and tech-focused funds for AI exposure, value ETFs have increasingly become direct and indirect beneficiaries of the AI investment cycle.
Multiples for some tech giants at the forefront of AI deployment have compressed as earnings have accelerated, allowing these legacy tech leaders to be picked up by value screens.
Traditionally value-oriented sectors such as industrials, utilities, and materials have also benefited from rising AI spending.
VLUE tracks the MSCI USA Enhanced Value Index, which scores each security for value characteristics relative to peers within the same GICS sector. Micron (MU) is the fund’s largest position, with about a 22% weight, while information technology accounts for roughly 41% of the portfolio.
The iShares Russell 1000 Value ETF (IWD) tracks the Russell 1000 Value Index. At its rebalance in late June, the index added Amazon (AMZN), Apple (AAPL), and Microsoft (MSFT) as its top holdings. The information technology sector currently accounts for about 20% of the index.
The Vanguard Morningstar Value ETF (VTV) holds large-cap US stocks that display strong value characteristics. JPMorgan Chase (JPM), Micron, and Berkshire Hathaway (BRK.B) are its top holdings.
To learn more, please watch the short video above.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Berkshire Hathaway Inc. (BRK.B) : Free Stock Analysis Report
Vanguard Morningstar Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
iShares MSCI USA Value Factor ETF (VLUE): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).

Are Value ETFs the New AI Trade?

Key Points
CoreWeave’s backlog grew to $104 billion in its latest quarter.
It expects to convert 75% of that backlog into revenue over the next four years.
More than 75% of its annualized revenue is already locked into those sticky contracts.
CoreWeave (NASDAQ: CRWV), a provider of cloud-based AI infrastructure services, went public at $40 per share on March 28, 2025. Its stock closed at a record high of $183.58 on June 20, 2025, but it now trades at about $90. Three major challenges weighed down its stock.
First, its enterprise value reached $91.1 billion -- or 18 times its 2025 sales -- when its stock hit its all-time high. Second, it struggled to justify that premium valuation as its debt and expenses surged. Lastly, a guidance cut related to data center delays in late 2025 spooked its investors.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, I believe CoreWeave is still one of the best recent AI IPOs to buy. Let's see why it still has plenty of upside potential, and why it's worth buying if you can tune out the near-term noise.
How fast is CoreWeave growing?
CoreWeave was once an Ethereum mining company, but it abandoned that business model after the cryptocurrency market's 2018 crash. It subsequently repurposed its GPUs to run AI tasks remotely and rebranded itself as an AI infrastructure company.
CoreWeave only operated three data centers at the end of 2022, but that network now spans 51 data centers across North America and Europe. It's installed more than a quarter of a million Nvidia's (NASDAQ: NVDA) high-end GPUs in those servers to train AI algorithms and process AI tasks. Nvidia also owns an 11.5% stake in CoreWeave, making it one of the company's largest investors.
As a dedicated provider of cloud-based data center GPUs, CoreWeave can process AI tasks roughly 35 times faster and at 80% lower cost than diversified cloud infrastructure platforms like Amazon Web Services (AWS) and Microsoft Azure. That's why its revenue skyrocketed as the generative AI market expanded.
In 2025, CoreWeave's revenue surged 168% to $5.1 billion as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 154% to $3.1 billion. But under generally accepted accounting principles (GAAP), which includes the interest on its debt and depreciation of its equipment, its net loss widened from $863 million to $1.17 billion.
In 2026, analysts expect its revenue to rise 151% to $12.9 billion as its adjusted EBITDA surges 144% to $7.5 billion. However, they expect its GAAP net loss to widen to $2.9 billion.
Why should you remain bullish on CoreWeave?
CoreWeave's bottom-line growth is wobbly. But that isn't surprising, since it's aggressively expanding its infrastructure to meet the AI market's demand for more processing power.
Its contracted revenue backlog expanded 246% year over year to $104 billion at the end of the second quarter of 2026. That's more than eight times higher than its projected 2026 revenue. Its top customers include Meta Platforms, Microsoft, OpenAI, and Anthropic.
During its first-quarter conference call in May, CEO Michael Intrator noted that "more than 75%" of its 2027 annualized revenue target of over $30 billion was locked into contracts. He also predicted that 75% of its backlog would be recognized as revenue within the next four years.
Based on that guidance, analysts expect CoreWeave's revenue and adjusted EBITDA to grow at CAGRs of 80% and 95%, respectively, from 2026 to 2028. At its current enterprise value of $96 billion, it trades at just 7 times this year's sales -- so it could soar a lot higher.
But investors should brace for a lot of volatility
CoreWeave is one of the only high-growth AI stocks I'd consider accumulating right now, but I also expect it to remain volatile for the foreseeable future. Its high debt-to-equity ratio of 14.3 at the end of the second quarter, lack of GAAP profits, and ongoing dilution will make it an easy target for the bears if the Fed hikes its benchmark rates this year to counter inflation.
But if you expect CoreWeave to defend its high-growth niche, grow its backlog, and for its GAAP profits to rise as economies of scale kick in, then it's still a promising long-term investment. Investors just need to brace for significant volatility and be ready to buy even more shares if it crashes.
Should you buy stock in CoreWeave right now?
Before you buy stock in CoreWeave, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 11, 2026.
Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Ethereum, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Amazon.com, Inc.

Options Strategies