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.com, Inc.

Key Points
Artificial intelligence (AI) applications are driving insatiable demand for copper, and that's encouraging miners to invest in new technology.
Rio Tinto's technology helps Amazon meet its emissions goals.
While the market continues to speculate over the possibility of a merger between Rio Tinto (NYSE: RIO) and Glencore, the news of a strategically important deal between Amazon (NASDAQ: AMZN) Web Services (AWS) and Rio Tinto appears to have fallen off the radar. However, discerning investors shouldn't ignore this deal because it could spark game-changing developments for Rio Tinto, artificial intelligence (AI), and the data center industry.
Rio Tinto and Amazon Web Services agree on a strategic collaboration
In the end, it's very simple. Amazon Web Services is a dominant force in cloud computing and AI, and it needs data centers to host data and provide computing power. In turn, data centers need copper for their infrastructure. In fact, S&P Global believes that AI and defense will boost copper demand by 50% by 2040, creating a significant shortfall.
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If you are bullish on copper, you could buy more of a pure-play copper company, such as Freeport-McMoRan, but the recent deal with AWS makes Rio Tinto an intriguing option as well.
The deal involves AWS becoming Rio Tinto's first customer for copper produced using a revolutionary new "Nuton" technology, which has been under development for 20 years. Nuton is a proprietary bioleaching process used to recover copper from stockpiles of already mined material. It's a two-year agreement, and given that it's a relatively low-carbon-emitting activity, the copper AWS acquires from bioleaching at the Johnson Camp copper mine will help it meet its carbon-emissions goals.
Why the deal is revolutionary
The agreement is also a demonstration of industry innovation, using a technology that literally relies on cosmic rays from supernovas. To 3D map the highly structured stockpiles and ensure the bioleaching material reaches the right places, Rio Tinto will use muon detection technology.
Muons are created in collisions between cosmic rays and molecules in Earth's atmosphere. They travel almost at the speed of light and constantly hit the Earth. By placing muon receptors beneath the stockpile, engineers can model the stockpile based on how muons travel through the stockpile as different materials absorb different amounts of energy from the muons as they (muons) pass through.
How AWS is helping Rio Tinto develop Nuton technology
However, the agreement isn't just about securing copper for AWS; Rio Tinto will use the AWS platform to model and simulate leaching in the stockpile and to optimize the bioleaching process.
That's important because Rio Tinto has signed a five-year deal with muon technology company Ideon Technologies to help identify copper and iron ore assets. As such, the strategic collaboration is a kind of technology blueprint for Rio Tinto's future use of Nuton and muon technology. That could revolutionize mining and help ensure adequate copper supplies for data centers' needs, as AWS and other hyperscalers work to address the problem.
Should you buy stock in Rio Tinto Group right now?
Before you buy stock in Rio Tinto Group, 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 Rio Tinto Group 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and S&P Global. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Rio Tinto Teams Up With Amazon: Fueling the AI Boom With Low-Carbon Copper for Data Centers

Key Points
Apple stock is cooling off after a rapid run-up in the second half of last year.
A Gemini-powered Siri upgrade could come in February.
Apple shares are far from cheap.
Less than one month into the new year, Apple (NASDAQ: AAPL) is already down 8.8% year to date at the time of this writing, compared to a 1% gain in the S&P 500 (SNPINDEX: ^GSPC).
That makes Apple the second-worst-performing component of the Dow Jones Industrial Average.
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Here's what's driving the sell-off, and if the mega-cap tech stock is a buy now.
Context is key
Always take context into account when evaluating a stock's performance within a specific window, such as year to date or a year.
Apple sold off in the first half of 2025 due to tariff-related fears of eroding margins that never came true. The stock then gained 32.5% in the second half of the year. So heading into 2026, the company had added more than $1 trillion in market cap in a matter of months.
The stock is still up big over the last seven months, even when factoring in its pullback so far this year. It's up to investors to decide how much of the gain is warranted.
Apple is making a splash with AI
On Jan. 12, Alphabet and Apple published a joint statement announcing the integration of Google's Gemini models and cloud technology into the next generation of Apple Foundation Models. Reports indicate that a Gemini-powered version of Siri could come as soon as February.
Having a voice-controlled artificial intelligence (AI) assistant is a brilliant move on Apple's part. Manually-controlled AI functionality may be off-putting to some users, but narrating commands to an assistant could make AI more approachable for users who aren't tech savvy. It's also a good way for the company to gradually phase in AI rather than launching big, overwhelming upgrades.
Apple is known for taking its time with product launches, which is something long-term investors can appreciate. Instead, it aims to maximize the overall impact of a product or a product line's life cycle.
And that was certainly the case last year with the iPhone 17, which featured significant improvements in its camera, processing, and design but lacked the AI showstopper that some investors wanted.
Still, the iPhone 17 came out in September 2025, and investors cheered strong demand and a return to meaningful earnings growth, which Apple had been lacking for years.
Fundamentals are improving
As you can see in the following chart, Apple's earnings soared during the pandemic as consumers shifted purchasing from services to products, but then stagnated. Its recent results have given its earnings and operating margins a much-needed jolt.
Apple's product revenue grew 4.1% in fiscal 2025, and services revenue jumped 13.5%.
For the fiscal year, products raked in a highly impressive 36.8% gross margin, but services were even better at 75.4%. And with services now making up 26.2% of total sales, margins could continue to expand.
Overall, Apple's results have been solid. And that's without factoring in the growth potential of what is likely to be a big calendar year for the company with AI-powered software upgrades and an iPhone purpose-built for AI integration, which may also feature its first-ever foldable design.
Higher-end versions of the iPhone 18 are expected to be powered by Taiwan Semiconductor Manufacturing's 2-nanometer chips, which will make it by far the most expensive iPhone ever, but will also drastically improve processing and battery life.
Apple's valuation is elevated
With earnings growth and margins improving, the stock may become more appealing to growth investors. But its valuation is expensive, given that analyst estimates have the company growing earnings by only 10.3% in fiscal 2026 and 10.5% in fiscal 2027.
Even after its recent sell-off, Apple has a 30.9 forward price-to-earnings ratio (P/E) -- which is more expensive than Amazon, Alphabet, Microsoft, and Meta Platforms. Even Broadcom, which is growing at a breakneck pace and is also high-margin, has a 31.6 forward P/E. And Nvidia -- which converts over half of its revenue into after-tax net income and is also growing at a breakneck pace -- has a forward P/E under 40.
I would choose every stock in that chart over Apple because they all have strong competitive moats and more attractive valuations relative to their growth potential. Another distinct difference between Apple and other major tech stocks is its business model.
Apple is heavily dependent on consumer spending. In fiscal 2025, it demonstrated remarkable resilience in its core North American market, and strong growth in Europe and Asia (outside of China).
But China sales declined, and it remains to be seen if U.S. consumers will continue paying higher prices for Apple's AI-integrated devices, especially given that the cost of living continues to outpace wage growth. By comparison, big tech companies that rely mainly on business-to-business sales aren't as sensitive to weakness in consumer spending.
Keep Apple on a watch list (for now)
Apple is a decent stock to buy in 2026, but it's not all that compelling. Investors can buy a high-octane growth stock like Broadcom for a similar valuation, or get far more balanced earnings growth from Microsoft, or high margins and solid earnings from Meta at a far less expensive valuation.
The slower a company's earnings growth, the more critical you should be of its valuation. And in Apple's case, it's somewhere between a tech stock and a consumer-facing company.
In terms of consumer-facing companies, I would much rather buy high-yield dividend stocks like Coca-Cola and Procter & Gamble, which are passive-income powerhouses at far more attractive valuations than Apple.
That said, investors who believe in Apple's ability to capitalize on AI may still want to consider buying Apple now. And if there is a sell-off in AI stocks or a pullback in hyperscaler spending on AI, I would expect Apple to hold up far better than companies that have been pouring capital into long-term AI investments. Apple has an impeccable balance sheet and consistently generates gobs of free cash flow, which it uses to buy back stock and invest in long-term projects.
In sum, there are worse ideas than buying Apple after its latest pullback, but it's not a screaming buying opportunity by any means.
Should you buy stock in Apple right now?
Before you buy stock in Apple, 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 Apple 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Daniel Foelber has positions in Nvidia and Procter & Gamble and has the following options: short February 2026 $150 calls on Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Salesforce, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Apple Is the Second-Worst-Performing Dow Jones Stock So Far in 2026. Is the Sell-Off a Buying Opportunity?

Key Points
Amazon and Uber have delivered substantial returns since January 2023, but former hedge fund manager Jim Cramer says it's not too late to buy the stocks.
Amazon is not only using artificial intelligence to drive revenue growth in its cloud computing business, but also to make its retail operations more efficient.
Uber runs the largest ride-sharing platform in the world, which means it is uniquely positioned to help autonomous driving companies brings robotaxis to market.
Since January 2023, Amazon (NASDAQ: AMZN) shares have increased 190%, while Uber Technologies (NYSE: UBER) shares have increased 230%. But CNBC's Jim Cramer, a former hedge fund manager who earned returns of 24% annually over 14 years, recently said both stocks are still worth buying.
Here are the important details.
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1. Amazon
Amazon has a strong presence in three big industries. It operates the largest e-commerce marketplace in North America, Western Europe, and the Middle East. It is the third largest ad tech company in the world. And Amazon Web Services (AWS) is the largest cloud services provider as measured by infrastructure and platform services spending.
Leadership in cloud computing is particularly important because it means AWS is ideally positioned to benefit as demand for artificial intelligence (AI) infrastructure increases. CEO Andy Jassy recently told analysts, "AWS is where the preponderance of companies' data and workloads reside, and part of why most companies want to run AI on AWS."
AWS has doubled down on the opportunity by developing custom AI accelerators for training and inference, which provide customers with an alternative to Nvidia GPUs. The company has also positioned itself as the primary cloud provider for Anthropic, an AI startup valued at $350 billion. Finally, AWS has introduced new cloud services such as Bedrock for generative AI application development.
Elsewhere, Amazon is using AI to make its retail business more efficient. It has designed more than 1,000 generative AI applications to improve inventory placement, demand forecasting, last-mile delivery, and customer service. It has also developed an AI model that lets robots navigate warehouses faster, and it's designing another model that will let human workers engage robots in natural language.
Wall Street expects Amazon's earnings to increase at 18% annually over the next three years. That makes the current valuation of 35 times earnings look relatively reasonable, especially because the company beat the consensus earnings estimate by an average of 25% over the past eight quarters. I agree with Jim Cramer. Patient investors should feel comfortable buying a position in Amazon today.
2. Uber Technologies
Uber operates not only the largest ride-sharing platform in the world, but also one of the largest food delivery platforms. Integrating those services into a common mobile app lets Uber efficiently acquire new customers by cross-promoting its mobility services to delivery users and its delivery services to mobility users.
While not a traditional AI stock, Uber uses machine learning to efficiently match and route drivers, provide customer support, and personalize advertising. In addition, leadership in ride-sharing makes Uber the perfect partner for autonomous vehicle (AV) companies that want to scale a robotaxi businesses.
Uber already works with 20 AV companies. CEO Dara Khosrowshahi says, "Uber can deliver the lowest operational costs for our AV partners because we are leaps and bounds ahead on every aspect of the go-to-market capabilities that are critical for commercialization." Some of the most consequential partnerships are:
Alphabet's Waymo offers robotaxi rides through Uber in Phoenix; Austin, Texas;, and Atlanta.
Avride offers robotaxi rides through Uber in Dallas.
WeRide offers robotaxi rides through Uber in the United Arab Emirates (Abu Dhabi, Dubai) and Saudi Arabia (Riyadh). The companies plan to add about 15 more cities in the next five years.
Nvidia provides hardware, sensors, and software through its Hyperion platform that Uber partners, including Stellantis, use to build AVs. Uber aims to deploy 100,000 robotaxis within a few years.
Straits Research estimates that the ride-sharing market will grow at 21% annually through 2033, and Grand View Research estimates the robotaxi market will grow at 99% annually over the same period. Uber should be a major beneficiary in both cases. Morgan Stanley analysts think the company will account for 22% of U.S. robotaxi trips by 2032, which would put it in third place behind Waymo and Tesla.
Wall Street expects Uber's earnings to increase at 26% annually over the next three years. That makes the current valuation of 10 times earnings look cheap, especially when Uber beat the consensus earnings estimate in six of the past eight quarters. Investors with a time horizon of at least three years should buy a position today.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Trevor Jennewine has positions in Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jim Cramer Says Buy 2 AI Stocks Up 190% and 230% Since Early 2023

Key Points
Form 13Fs provide investors with a concise snapshot of the stocks Wall Street's savviest fund managers have been buying and selling.
Viking Global Investors' Ole Andreas Halvorsen completely exited his fund's positions in Nvidia and Amazon -- and profit-taking may explain only part of the story.
Meanwhile, Halvorsen scooped up over 2.4 million shares of a cash-generating powerhouse during the third quarter that's historically inexpensive.
Data is the fuel that keeps Wall Street's engine humming along. The issue for investors is that there's often more data available than they can possibly digest. Between earnings season -- the six-week period each quarter where most S&P 500 companies report their operating results -- and near-daily economic data releases, it's easy for something important to fall through the cracks.
For instance, investors might have overlooked the flurry of Form 13F filings in mid-November. A 13F is a required filing no later than 45 days following the end of a quarter for institutional investors with at least $100 million in assets under management. These filings intricately detail the stocks Wall Street's brightest money managers bought and sold in the latest quarter (in this instance, the quarter ended Sept. 30).
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Although the newly retired Warren Buffett has long been the most-followed billionaire fund manager on Wall Street, he's far from the only billionaire investor known to make waves. For example, Viking Global Investors' chief, Ole Andreas Halvorsen, has a history of outperforming the stock market's major indexes.
But the biggest surprise you'll find in Halvorsen's fund, which is overseeing close to $39 billion in assets under management, is his approach with members of the trillion-dollar club. During the September-ended quarter, Halvorsen completely jettisoned his fund's stakes in artificial intelligence (AI) titans Nvidia (NASDAQ: NVDA) and Amazon (NASDAQ: AMZN), while making another trillion-dollar company a new top-five holding.
Viking Global Investors' billionaire boss shows Nvidia and Amazon to the door
For most billionaire investors, members of the "Magnificent Seven" are commonly held stocks. These are seven of the most influential businesses on Wall Street that possess one or more sustainable moats. But for Ole Andreas Halvorsen, two of these leading businesses were given the heave-ho.
During the third quarter, Viking Global's billionaire boss dumped all 3,897,092 shares of Amazon (previously the fund's eighth-largest holding) and sent all 3,681,935 shares of Nvidia (previously the 26th-largest holding by market value) to the chopping block.
Simple profit-taking may explain why Halvorsen oversaw big-time selling in two stocks that are widely held by other billionaires and everyday investors. The average stock in Viking Global's portfolio has been held for less than 19 months, which indicates Halvorsen isn't afraid to cash in his fund's chips when presented with the opportunity.
The worry is that there may be more nefarious reasons that Halvorsen showed Nvidia and Amazon to the door.
For instance, there's skepticism about the sustainability of the AI revolution. While most investors recognize the long-term potential of this technology, historical precedent shows that every game-changing technology has endured an early stage bubble over the last three decades. Investors consistently overestimate the adoption and/or optimization rates of innovations, leading to lofty expectations that go unmet. If an AI bubble were to form and burst, graphics processing unit titan Nvidia would be hit especially hard.
Another possible reason for this selling is Halvorsen's displeasure with the valuations of Nvidia and Amazon amid an already pricey stock market. Historically, a price-to-sales (P/S) ratio above 30 for a company at the forefront of a next-big-thing trend is indicative of a bubble. Nvidia's P/S ratio briefly surpassed 30 in early November.
As for Amazon, it's inexpensive relative to its forward cash flow potential, but quite pricey based on the traditional price-to-earnings (P/E) ratio. Halvorsen and his top advisors may have had little interest in paying a P/E ratio of 34 for Amazon.
Ole Andreas Halvorsen has a new favorite trillion-dollar stock
However, Viking Global's chief investor has also done his fair share of buying. The fund's most recent 13F shows that Halvorsen oversaw the opening of 15 new positions during the third quarter, none of which looms larger than trillion-dollar titan Microsoft (NASDAQ: MSFT).
During the September-ended quarter, Viking Global Investors acquired 2,429,412 shares of Microsoft, worth almost $1.26 billion. This purchase slots Microsoft in as the fund's fifth-largest holding and accounts for 3.2% of invested assets.
Make no mistake about it -- Microsoft's future is very much reliant on the success of artificial intelligence. Azure, the company's cloud infrastructure service platform, is incorporating generative AI and large language model solutions to attract new clients, retain existing subscribers, and increase its already robust subscription pricing power. Azure's constant-currency growth rate in Microsoft's fiscal first quarter (ended Sept. 30) was a scorching-hot 39%.
Given the potential for an AI bubble-bursting event, Microsoft's stock may be exposed to downside pressure. The caveat is that AI application companies are likely to endure less pain than AI hardware providers like Nvidia.
The silver lining for Microsoft is that it's far more than just an AI stock. While cloud services and AI tend to hog all the glory, legacy segments, Windows and Office, continue to generate high margins and an abundance of operating cash flow. Even though these segments are well past their glory days, they've retained significant market share and provide Microsoft with cash that can be used to invest in several high-growth initiatives, including AI, cloud computing, and quantum computing.
Speaking of cash, Microsoft has more than it knows what to do with. It closed out September with $102 billion in combined cash, cash equivalents, and short-term investments, and generated $45 billion in net cash from its operating activities in just the first three months of its fiscal year. This level of cash generation enables the company to conduct buybacks, pay a sizable dividend, and lean on acquisitions as a steady part of its corporate diet.
Lastly, Viking Global's billionaire boss may be enticed by Microsoft's comparatively attractive valuation. Its forward P/E of 25 marks a 16% discount to its average forward P/E over the trailing half-decade.
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, 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 Microsoft 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Billionaire Ole Andreas Halvorsen Dumped His $39 Billion Fund's Stakes in Nvidia and Amazon for Another Trillion-Dollar Superstar

Key Points
UPS easily beat Wall Street's Q4 revenue and earnings estimates.
However, the company looks for a weak first half of 2026.
Still, UPS appears poised to grow after this year while keeping the attractive dividends flowing.
I've been making the case for a while that United Parcel Service (NYSE: UPS) was poised to be a great turnaround story. It's too soon for me to be able to brag that I was right. However, UPS stock has risen around 25% over the last four months – an encouraging trend.
UPS reported its 2025 full-year and fourth-quarter results on Tuesday, Jan. 27, 2026. The company delivered good news, bad news, and great news for investors.
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The good news
Perhaps the most important good news from UPS' Q4 update was that it easily beat Wall Street's expectations. The package delivery giant generated revenue of $24.5 billion in the fourth quarter, higher than the average estimate of $24 billion. UPS posted Q4 adjusted earnings per share (EPS) of $2.38, well above the consensus estimate of $2.20.
In her remarks during the Q4 earnings call, UPS CEO Carol Tomé said that the "results exceeded our expectations, driven by strong revenue quality, solid cost management, and overall great execution." She noted that the company's international small package business recorded its highest Q4 revenue in four years.
Tomé's reference to revenue quality reflects more good news. Although UPS' U.S. daily volume declined by 10.8% year over year, its revenue per piece jumped 8.3%. The company's focus on revenue quality over quantity appears to be working.
UPS continues to make progress in two key market segments. Its small- and medium-sized business (SMB) penetration in Q4 was the highest in the company's history. Business-to-business (B2B) penetration was the highest fourth-quarter level in six years. CFO Brian Dykes cited healthcare logistics as a "robust growth area" for UPS.
The bad news
Investors didn't celebrate UPS' solid results, though. With shares falling moderately after the Q4 update, they appeared to focus more on the company's bad news.
UPS is likely headed for a weak first half of 2026. Dykes said in theearnings callthat management expects profits to decline around 30% year over year in the first quarter of 2026. Tomé referred to a "bathtub effect" this year, with the first half down and the second half up.
Why the disparity between the first six months of 2026 and the last six months? Four factors stand out.
UPS' Amazon (NASDAQ: AMZN) volume glide-down and the timing of related higher costs will hit harder in the first half of the year. So will the transition costs associated with shifting Ground Saver back to the U.S. Postal Service. Additionally, UPS will incur higher costs in the first part of the year related to the retirement of its MD-11 aircraft fleet. The impact of tariffs is also an issue.
The great news
Now for the great news for UPS. 2026 is expected to be an inflection point for the company. The future of UPS won't be focused on shrinking its business but instead on growing in higher-margin areas.
The Amazon glide-down will be completed this year. Although UPS' overall shipment volume will decline, its cost structure will also be lower. The network reconfiguration resulting from the Amazon strategy should make UPS leaner and more agile as it targets more profitable shipments.
For income investors who love UPS' juicy 6.2% dividend yield, perhaps the greatest news of all is that the dividend should be on a firmer footing in 2026 than in 2025. The company paid more in dividends than it generated in free cash flow last year. However, UPS projects free cash flow of $6.5 billion in 2026 and plans to pay dividends of around $5.4 billion (subject to board approval).
Granted, the 2026 free cash flow estimate doesn't account for the financial impact of UPS' voluntary driver separation program. But that's only a one-time issue for the company. Even better, the driver separation program positions UPS to generate higher free cash flow going forward.
I know that some have argued in the past that UPS could (and even should) cut its dividend. This scenario seems unlikely anytime soon, based on the company's Q4 update. Again, that's really great news for income investors.
Should you buy stock in United Parcel Service right now?
Before you buy stock in United Parcel Service, 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 United Parcel Service 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Keith Speights has positions in Amazon and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UPS Just Delivered Good News, Bad News, and Great News for Investors

For Immediate Release
Chicago, IL – January 29, 2026 – Today, Zacks Investment Ideas feature highlights Applied Optoelectronics AAOI, Amazon AMZN, Oracle ORCL and Microsoft MSFT.
AAOI: A Critical Link in the AI Revolution
Applied Optoelectronics manufactures fiber-optic networking products for the cable TV, fiber-to-the-home, and data center markets. The Zacks Rank # (Buy) stock manufactures laser transceivers, which are a compact, high-performance module that acts as a bridge between electrical and optical communication.
This technology translates electrical data signals from network equipment (such as switches, routers, or GPUs). Laser transceivers are critical to the AI revolution because they overcome the speed and bandwidth limitations of traditional copper cables, making them valuable for enabling the massive, low-latency data flow required from training and operating large AI models. Additionally, with copper prices rising currently, these fiber optic cables are even more valuable.
New Bullish Catalyst: Hyperscale AI Contract Win
AAOI announced that it has landed its first volume order of 800G transceivers from a major hyperscale customer (rumored to be Amazon. This order will immediately be reflected in AAOI revenues. Additionally, when a company receives an order from a major tech juggernaut like Amazon, more orders often follow as new data centers are built.
Big Technical Breakout Signals Demand
Amid the contract win and multiple analyst updates, investors are rushing to get into AAOI shares. Shares are breaking out of a multi-week base structure and up more than 20% for the session as volume turnover has swelled to more than two times the norm, signaling massive institutional demand.
Meanwhile, roughly 18% of the float is short the stock. In other words, shorts are likely to be squeezed out of their shares in the coming days.
Explosive Revenue Growth
Wall Street analysts expect AAOI to grow revenues by a healthy 67% in 2026. However, this number is likely to be revised higher as the hyperscaler deal is taken into account.
Data Center Spending is Ramping
While 2025 was a strong year for data center spending, it is only expected to ramp further into the new year.
As competition between LLMs like ‘Gemini’ and ‘ChatGPT’ heats up, spending will increase. Meanwhile, 2026 is likely to be the year when robots and physical AI begin to appear in the mainstream (each of which requires data centers to train the AI).
Deep-Pocketed Customers
Beyond Amazon, AAOI has several deep-pocketed customers that are likely to spend more on AI including Oracle and Microsoft.
Bottom Line
As the battle for AI supremacy intensifies among global tech leaders, the demand for robust, high-performance networking hardware has never. Applied Optoelectronics finds itself at the center of this transition, benefitting from both a shift away from expensive copper and a surge in data center expansion.
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Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Investment Ideas feature highlights: Applied Optoelectronics,Amazon, Oracle and Microsoft

Key Points
Amazon has a 12-quarter streak of beating Wall Street’s earnings-per-share estimates.
The business has a strong position in many industries.
Investors might want to take advantage of the current valuation.
We are at the start of earnings season kicking off in earnest, and Amazon (NASDAQ: AMZN) investors are ready to get a fresh update on how the business is performing. Shares were up only 5% in 2025, but as of Jan. 27 they had climbed 6% in 2026.
Should you act quickly and buy this "Magnificent Seven" stock before it reports financials after the markets close on Feb. 5?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
I expect Amazon to report strong financial performance for Q4 2025, continuing a trend of upbeat results. The company's earnings per share, for instance, have exceeded Wall Street estimates in 12 straight quarters.
However, the smartest investors should be interested in buying Amazon shares regardless of the fact that its earnings report is coming up. This is one of the most dominant businesses in the world with an impressive position in various industries, like e-commerce, streaming entertainment, digital advertising, and cloud computing.
Amazon is also investing aggressively to develop the technical infrastructure needed to cater to the surging artificial intelligence demand that it's seeing.
It helps that shares trade at a reasonable valuation right now. Investors can buy the stock at a near-10-year low enterprise value-to-earnings before interest and taxes multiple of 32.7. Perhaps it's time to act with a sense of urgency and consider adding Amazon to your portfolio.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, 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 Amazon 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 29, 2026.
Neil Patel 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Amazon Stock Before Feb. 5?

Key Points
Intel stock soared following investments from the U.S. government and Nvidia.
Investors were disappointed with its first-quarter guidance.
The world's leading chip manufacturer, TSMC, continues to deliver strong results and is affordably priced.
After years of lagging the market, Intel (NASDAQ: INTC) has suddenly found new life.
The stock has more than doubled over the last six months, even after its sharp pullback following disappointing guidance in its fourth-quarter earnings report.
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Intel has rebounded with the help of the U.S. government, which took a 9.9% stake in the stock last August, which was followed by Nvidia investing $5 billion in the chip-maker in September.
Both moves gave Intel much-needed capital to continue investing in its foundry business and to develop new AI products. It also showed confidence in the company's turnaround prospects under new CEO Lip-Bu Tan, who has cut costs, streamlined the business, scaled back on capital expenditures, and is aiming to overhaul the culture, making it less bureaucratic and more like a start-up.
However, the recent pullback on its earnings report shows that the stock may be overbought and that expectations seem to have outrun the current reality of the business. Intel is still struggling to grow and turn a profit. Revenue fell 4% in the fourth quarter to $13.7 billion, and it reported a generally accepted accounting principles (GAAP) loss of $591 million, though it was profitable on an adjusted basis.
For the first quarter, it expects revenue of $11.7 billion-$12.7 billion, which is a sharp sequential decline, and sees adjusted earnings per share of just break-even.
For investors looking to capitalize on the AI infrastructure boom, there's a more reliable stock to buy here. In fact, it's a chief rival of Intel. I'm talking about Taiwan Semiconductor Manufacturing Corporation (NYSE: TSM), the world's leading contract manufacturer of semiconductors.
A track record of excellence
TSMC, as the company is often known, isn't a household name like Intel. It doesn't make branded products, and it's based in Taiwan rather than the U.S.
However, the company is one of the most valuable in the world at a market cap of $1.8 trillion, and it's a linchpin in the global economy as it's the primary chip manufacturer for tech titans like Apple, Nvidia, AMD, Broadcom, and others. It manufactures more than half of the contract chips in the world and is estimated to account for 90% of the advanced contract chips.
That gives it a strong competitive advantage, and its results back that up as it's turned in phenomenal growth and profit margins during the AI boom.
In its fourth quarter, revenue rose 25.5% to $33.7 billion, and it reported an operating margin of 54%, or $18.2 billion in operating income.
TSMC now makes 77% of its revenue from advanced chips, which it defines as those that are 7 nanometers (nm) or less. The stock also trades at an attractive valuation at a price-to-earnings ratio of 32, making it only slightly more expensive than the S&P 500. Historically, the stock has traded at a discount because it's based in Taiwan and some investors fear that China could invade the island territory.
TSMC stock has also been a longtime winner on the stock market, up more than 1,000% over the last decade.
Intel vs. TSMC
Intel operates in two primary segments: its products division, which refers to its chip designs, and its foundry division, which is focused on manufacturing. Historically, the company has manufactured chips solely for itself, but it restructured its business in 2021 to open its foundry to outside customers and has signed up some new customers, including Amazon.
Intel has staked the future of the foundry business on advanced processes like 18A (18 angstroms or 1.8nm), which it recently launched. 18A and the upcoming 14A, which is expected to enter production in 2028, have the potential to make Intel a real competitor to TSMC. However, a meaningful challenge from Intel is likely years away, and Intel has been losing billions of dollars a year on the foundry business as it builds out advanced processes in an attempt to establish a third-party manufacturing business.
At this point, Intel stock is more expensive than TSMC, even though its revenue is basically flat and it's losing money on a GAAP basis. TSMC, on the other hand, expects to grow revenue by a compound annual rate of around 25% through 2029, and it's currently keeping more than half of its revenue as operating income.
While Intel's turnaround may be appealing as a story, TSMC is the much safer bet here and should continue to beat the market as long as the AI boom continues.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 28, 2026.
Jeremy Bowman has positions in Advanced Micro Devices, Amazon, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Forget Intel: This AI Infrastructure Stock is a Better Bet for 2026

Key Points
UPS has one of the highest dividend yields in the S&P 500.
It generated just enough cash to cover its payout last year.
The company expects to continue paying its hefty dividend in 2026.
At over 6%, UPS (NYSE: UPS) has one of the highest dividend yields in the S&P 500, where the average is below 2%. A high-yielding payout is often a warning sign of potential sustainability issues.
While UPS is experiencing some headwinds, the logistics giant expects to continue delivering its high-yielding dividend to shareholders. Here's a look at what drives its view.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Ending on a high note
UPS recently reported its fourth-quarter and full-year financial results. The company generated $24.5 billion in revenue in the fourth quarter, just ahead of analysts' expectations. Meanwhile, its adjusted earnings of $2.38 per share beat the consensus estimate of $2.20 per share. Those results pushed the company's full-year revenue to $88.7 billion, while its adjusted earnings per share were $7.16. However, UPS' revenue is still well below the $100 billion it reported in 2022.
The company's financial results have been under pressure in recent years due to global trade issues and its decision to reduce its reliance on its top customer, Amazon. These issues led the company to focus on reducing costs and growing revenue from higher-margin sources. It made significant progress last year by closing facilities, reducing its workforce, and expanding its healthcare logistics capabilities.
That enabled the company to steadily improve its free cash flow. It generated $8.5 billion in cash from operations last year and $5.5 billion in adjusted free cash flow. It paid $5.4 billion in dividends and completed $1 billion in share repurchases. UPS used its strong balance sheet to cover the shortfall.
Hitting an inflection point
UPS anticipates "2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion," commented CEO Carol Tome in the fourth-quarter earnings press release. The company expects to complete its strategy of reducing its low-margin Amazon volumes by 50% this year. That should boost its margins as it replaces those volumes with higher margin revenue.
Despite lower Amazon revenue, UPS anticipates its sales will rise to $89.7 billion this year. Meanwhile, the company expects to incur about $3 billion in capital expenditures, which is down from $3.7 billion last year. Additionally, it plans to pay another $5.4 billion in dividends this year. It should be able to cover its shareholder payout with free cash flow again in 2026. It also has a hefty cash balance (nearly $5.9 billion at the end of 2025), which provides it with some cushion.
The dividend is growing more sustainable
UPS has either maintained or increased its dividend every year since going public in 1999. The company's commitment to this payment is one of its core principles and a key indicator of its financial strength. While sustainability questions have surrounded the shareholder payout in recent years, it appears to be heading back toward solid ground. That makes UPS an intriguing option for investors seeking a potentially lucrative stream of dividend income.
Should you buy stock in United Parcel Service right now?
Before you buy stock in United Parcel Service, 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 United Parcel Service 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% 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 January 28, 2026.
Matt DiLallo has positions in Amazon and United Parcel Service. The Motley Fool has positions in and recommends Amazon and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UPS Plans to Continue Delivering its 6%-Yielding Dividend in 2026

(RTTNews) - Amazon (AMZN) has announced plans to shut down the majority of its Amazon Fresh and Amazon Go grocery stores, pivoting its physical grocery strategy towards delivery services and an expanded Whole Foods footprint.
The company acknowledged that while its branded grocery stores showed promise, they have not yet delivered a distinctive customer experience with an economic model suitable for large-scale expansion. Amazon will evaluate individual locations to determine whether some can be converted into Whole Foods stores. The company currently operates more than 550 Whole Foods locations and plans to open over 100 new stores in the coming years, including smaller-format Whole Foods Market Daily Shop outlets. According to CEO Andy Jassy, Amazon's overall grocery business has grown to more than $100 billion in gross merchandise sales over the past year, ranking it among the top three grocers in the United States.
The company is also prioritizing same-day delivery, having expanded perishable delivery to more than 5,000 U.S. cities, with further growth planned in 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Amazon.com, Inc.

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