Amazon's $200B AI Capex, Stellantis EV Charges, and Reddit's Strong Earnings

Amazon's Massive AI Spending

• 📉 Amazon shares are down significantly due to a projected $200 billion in capital expenditures for the year, primarily for AI investments.
• ⚠️ This spending forecast exceeds previous estimates and is impacting the company's operating income guidance, which fell below Wall Street expectations.
• ⚡ Despite the capex concerns, Amazon Web Services (AWS), its AI division, reported 24% growth, its largest in three years, with a substantial backlog of nearly $250 billion.

Stellantis Pulls Back from EVs

• 🚗 Stellantis announced $26 billion in charges related to a business reset, including canceling EV projects and reducing production.
• 📉 The company is struggling with the high costs and sales of electric vehicles, leading to a significant pullback from its previous EV commitments.
• 📊 This move follows similar large charges from competitors like Ford ($19.5 billion) and GM ($7.6 billion) as the automotive industry recalibrates its EV strategy.

Reddit's Positive Financials

• 🚀 Reddit shares surged following strong fourth-quarter results that beat expectations across key metrics.
• 📈 The social media company projected current quarter sales of around $600 million, also topping estimates.
• 📊 Growth was driven by significant increases in ad revenue, with 67% growth in US sales and nearly 80% international revenue growth.

Other Notable Earnings

• ✅ Under Armour shares rose about 8% in pre-market trading after reporting a positive third-quarter earnings per share of 9 cents, contrary to Wall Street's expectation of a loss.