U.S. homes are sitting and not selling. Here's why
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
2 hours ago
- Forbes
Amazon Stock Falls 8%. Why, Jassy To-Dos, Why To Skip $AMZN Shares
Amazon stock fell 8.3% following a mixed second quarter report, according to CNBC. Why? Although Amazon's retail business performed well, investors expressed disappointment with the growth pace of Amazon Web Services – which grew more slowly than Microsoft Azure and Google Cloud. In a conference call, analysts expressed frustration with CEO Andy Jassy's explanations for AWS's relatively slow growth. Amazon's fundamental problem is its failure to adapt to the competitive imperatives of the generative AI age, as I described in my book Brain Rush. This age has been propelled by two companies – OpenAI which supplied the fast-growing ChatGPT and Nvidia, the designer of AI chips for speeding the training and operation of AI chatbots. Amazon seems to be applying the strategy it used to create the cloud services industry to one where it seems struggling to catch up. More specifically, unlike Microsoft and Google – which have access to proprietary integrated AI chatbots (ChatGPT and Gemini, respectively) – AWS's strategy of handing off to developers the task of choosing and integrating individual computing services requires more technical expertise – thereby slowing adoption. To grow faster, Jassey ought to consider three possible strategies: Since Jassy helped build AWS and has yet to demonstrate a compelling vision for competing with faster growing rivals, I am skeptical of whether Amazon will be able to leapfrog these rivals. 'Our conviction that AI will change every customer experience is starting to play out," Jassy said in an earnings release. 'Our AI progress across the board continues to improve our customer experiences, speed of innovation, operational efficiency, and business growth, and I'm excited for what lies ahead,' he added. I have requested comment from Amazon and will update this post if I receive a response. Amazon's Mixed Second Quarter Results Amazon's second quarter results combined above expectations sales and earnings with a mixed forecast for the future combined with a shaky explanation for why AWS is growing more slowly in the age of AI. Here are the key numbers: Second quarter 2025 sales: $167.7 billion – up 13% and $5.5 billion above the FactSet consensus, according to Investor's Business Daily. Amazon and its hyperscaler rivals – such as Google and Meta – are increasing their capital expenditures. For example, Amazon is boosting capital expenditures 42% to $118 billion in 2025 – while Google estimates 2025 capex of $85 billion while Meta forecast $69 billion in 2025 capex, according to CNBC. While formal return on investment information is not available for these hefty capital expenditures, investors are using growth rates as a proxy for ROI. Since AWS is growing at roughly half the rate of Microsoft Azure and Google Cloud, investors see a problem with AWS's strategy. Jassy's responses to analyst questions about AWS' relatively slow growth. He said the faster-growing second ranked rival was '65%' the size of AWS, highlighted Microsoft's security woes – notably the hacking of SharePoint, and suggested it was 'early days' in AI, according to the Q2 earnings conference call transcript. These comments did not offer a compelling explanation of why Amazon – with 30% market share to Microsoft's Azure's 20%, according to Synergy Group -- is growing about half the rate of challengers. Why AWS Is Growing More Slowly Than Rival Cloud Services Since Jassy sidestepped the question, AWS is growing more slowly than rivals for two reasons: What Amazon Must Do To Surpass Cloud Services Rivals Here are three strategies Amazon must pursue to grow faster than its cloud services rivals: These recommendations may be difficult to implement and may not result in new services that deliver more value to customers than those from faster-growing rivals. For example, Amazon believes in inventing and improving its own solutions – as it did with AWS and Alexa. Therefore the recommended partnerships may be at odds with the company's culture. Moreover, as former CEO of AWS Jassy may have strategic blind spots. These could include viewing AI as primarily an infrastructure challenge that Amazon can solve with superior engineering and a tendency to see the more rapid growth of rivals as superficial – rather than a sign customers value AI cloud services from Microsoft and Google more highly. What Analysts Are Saying About Amazon's Stock Is Amazon stock – which has lost 2.4% of its value so far in 2025 – trading at a bargain price? Some analysts sound skeptical: The mixed views suggest some upside in Amazon stock. Of the 52 analysts who cover Amazon, the stock has 9.2% upside based on an average price target of $255.72, according to Zacks. Unless AWS' revenue growth accelerates, that modest gain could prove difficult to achieve.
Yahoo
14 hours ago
- Yahoo
Why is COIN stock down today? Coinbase earnings have investors spooked
Coinbase, the largest U.S.-based cryptocurrency exchange, reported second-quarter earnings on Thursday. Why is the stock tumbling? Here's what to know. Emotionally intelligent people use the 2-week rule to motivate themselves and reach their biggest goals Exclusive: Google is indexing ChatGPT conversations, potentially exposing sensitive user data Cinemark is opening 6 new panoramic, 270-degree movie theaters in 2025, and 14 more next year. Is one coming near you? What happened? Shares of Coinbase Global (Nasdaq: COIN) were down 15% in morning and midday trading on Friday, the lowest price the stock has hit in more than a month, after it reported lower-than-expected second-quarter adjusted profit due to a slowdown in trading, according to Reuters. Coinbase earnings Revenue came in at $1.5 billion, which missed analyst expectations of $1.6 billion, while revenue tied to transactions came in at $764 million, missing StreetAccount estimates of $787 million, according to CNBC. However, other earnings numbers came in strong. In the three months ending June 30, Coinbase's net income rose to $1.43 billion, delivering earnings per share (EPS) of $5.14. A further look at Coinbase's EPS shows the company beat analyst expectations of $1.51 by $3.63. Subscriptions and services offerings—which include stablecoins, staking, interest income, and custody—grew 9% from the same period a year ago, to $655.8 million, short of analysts' projection of $705.9 million. Analysts told Reuters that Coinbase could see trading volume improve, according to the company's revenue estimates. The earnings follow a surge in crypto spurred on by the GENIUS Act being signed into law on July 18. Coinbase on S&P 500 Coinbase joined the S&P 500 stock market index in May, replacing Discover; it is the first time a crypto company has been included on the index. The S&P 500 is one of the world's best-known stock market indexes. This post originally appeared at to get the Fast Company newsletter:
Yahoo
14 hours ago
- Yahoo
The Boeing Company (BA)'s A Horse & Its CEO Has Done A Great Job, Says Jim Cramer
We recently published . The Boeing Company (NYSE:BA) is one of the stocks Jim Cramer recently discussed. The Boeing Company (NYSE:BA) has become somewhat of a regular feature of Cramer's morning show. In this appearance, he had the firm's CEO, Kelly Ortberg, on for an interview. One aspect of The Boeing Company (NYSE:BA) that crossed Cramer's attention earlier was Japan ordering planes as part of trade negotiations. The CNBC TV host wondered whether The Boeing Company (NYSE:BA) would be able to meet the additional demand and discussed Ortberg's response given during the interview: 'And when I spoke to Kelly earlier, he's was saying, I'm saying, oh come on, these orders, I mean these orders are total, you know it's a [inaudible], then President Trump says, no, the orders are real and we're going to make the planes. Now I know Boeing. But Boeing's been a horse. And I just think that Kelly Ortberg, in such a short period of time, has done a remarkable job. We should salute some of these people. We can't just, bang them!' In his remarks about The Boeing Company (NYSE:BA) later during the day on Mad Money, Cramer praised Ortberg and the firm's recent earnings results: 'Now, I felt the same way about Boeing. Now, here's a stock that just hit a 52-week high after giving you almost a double from its low in April. Thank you, Kelly Ortberg. And even though it reported a great quarter with beautiful cash flow, the stock still got hit today. But unlike all the others, just call me a buyer of that one.' While we acknowledge the potential of BA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
