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earningscloud computingMSFTAMZNIntel
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Related tickers and likely impact
AMZN
• NeutralAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/22/2026 | 250.49 |
| Change that session | -4.53% |
MSFT
• NeutralMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/22/2026 | 521.58 |
| Change that session | -2.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- What Wall Street Expects from The Q3 Cloud and Infrastructure Scorecard: Microsoft Vs. Amazon
Azure grew 43% and AWS 37% last quarter, and investors want proof that heavy AI spending is turning into revenue. Microsoft 365 Copilot passed 30 million paid seats, while Amazon's AI and chips businesses each passed $25 billion in annualized run rates. Microsoft's commercial remaining performance obligations rose 84% (25% without OpenAI), while its free cash flow fell 23.2% to $19.64 billion. Amazon's trailing 12-month free cash flow was negative $7.6 billion after $54.21 billion of capital spending in one quarter, and its $5.75 EPS included a $53.4 billion one-time gain tied mainly to its Anthropic stake. Microsoft's operating margin is 46.8% versus Amazon's 11.2%, and Amazon is expected to report on October 29.
- Microsoft vs. Amazon: Is AMZN’s AI Growth Being Undervalued by Investors?
Microsoft (MSFT) and Amazon (AMZN) trade at similar forward P/E ratios of 25.13 and 23.64, but Amazon is using AWS and retail profits to fund an infrastructure buildout that has pushed its free cash flow below zero. In Microsoft's June quarter, revenue rose 18% to $90.0 billion and operating income rose 18% to $40.6 billion, with Azure growing 43%. AWS revenue surged 37% to $42.2 billion in the second quarter, its fastest growth in 18 quarters, and its operating income reached $16.6 billion; AWS generated about 60% of Amazon's operating income from roughly 21% of revenue. Amazon's consolidated operating income grew 43% against 20% revenue growth, which the article presents as evidence of real operating leverage rather than only promised AI revenue.
- Wells Fargo Names Top Pick Ahead of Q3 Earnings
Wells Fargo named Amazon its top long position and preferred mega-cap stock heading into third-quarter earnings, expecting another positive revision to AWS revenue and operating income. The firm cites AWS revenue acceleration and strong margins as the main drivers, while acknowledging near-term operating income risks from fuel costs and longer-term uncertainty around agentic commerce. It views Amazon's setup as more straightforward than other mega-cap tech names, where hedge fund positioning adds complications. Wells Fargo also sees AWS as the key driver of positive estimate revisions after the report.
- Should You Buy Amazon Stock Before Oct. 29?
Amazon will report third-quarter results on October 29, with focus on Amazon Web Services (AWS), its fastest-growing and most profitable segment. AWS generated $42.2 billion in revenue in Q2 2026, up 37% year over year, and held a $496 billion order backlog as of June 30. Sales of its own chips, such as Trainium, were tracking at an annualized rate of over $25 billion as of June 30. Earnings of $12.44 per share over the last four quarters put its P/E ratio at 21.2, compared with 30.2 for the Nasdaq-100. However, over $69 billion of the $120.7 billion pre-tax profit in the first half of 2026 came from paper gains on its Anthropic investment, and the author sees the stock as potentially attractive ahead of the report while stressing that long-term returns matter more.
- Amazon Stock Could Climb Higher as AWS Becomes an Even Bigger Growth Engine
The article argues AWS could drive Amazon's valuation, with growth of 37% last quarter, the fastest in 18 quarters, and a backlog of $496 billion. Second-quarter revenue rose 19.6% to $200.61 billion, and GAAP EPS of $5.75 was lifted by a $53.4 billion Anthropic gain. However, a planned capital spending of about $200 billion in 2026 and recent negative free cash flow of -$7.6 billion raise doubts about Amazon's ability to fund its ambitions. The author's price target is $329.06, 31.62% above the $250 close on October 16, with a bull case of $378.24 and a bear case of $283.26.
- Q3 TrendsSuggest Amazon Will Rise on Oct. 29 But That’s Not Why I’m Buying
The author follows Amazon (AMZN) ahead of its Q3 earnings on Oct. 29 and says the main reason to hold is AWS rather than the earnings beat. Amazon beat Q3 EPS estimates in 2023, 2024 and 2025, and the stock rose 6.83%, 6.19% and 9.58% on those earnings days. AWS growth accelerated from 20% in Q3 2025 to 37% in Q2 2026, when AWS delivered $42.23 billion in revenue at a 39.4% operating margin and a $496 billion backlog. Risks cited include trailing free cash flow of -$7.6 billion, about $200 billion of planned 2026 capex, and reported earnings that include a $53.4 billion Anthropic gain. The article also compares Amazon's P/E of 36 with Microsoft's 30.
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Blackstone's third-quarter AUM rose 10% to nearly $1.4 trillion, with $63.3 billion of inflows and fee-related earnings up 6% to almost $1.6 billion. Distributable earnings fell 9% to $1.7 billion and distributable EPS fell 13% to $1.52, as net realizations dropped 34%, cutting the variable dividend to $1.12 per share from $1.29. The CFO anticipates a significant step-up in net realizations in the fourth quarter, including the sales of multiple companies. The shares, around $117, are down 28.5% from their 52-week high and trade below 20 times the $5.95 distributable EPS of the last 12 months. The author sees this as a reasonable price for a leading asset manager, citing AI investing and the growth of private wealth and private credit platforms, while noting risks from heavy AI infrastructure bets and private credit's recent growing pains.
- Mobileye Sinks 5% While BlackBerry Rises 3%: Is Wall Street Choosing Car Software Over Chips?
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