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Amazon Gains Momentum Ahead of Q4 Earnings as AWS Growth Accelerates

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Lale Akoner Global Markets Analyst At Etoro 1

Editor’s note: This release outlines how Amazon enters its fourth-quarter earnings period with improving investor sentiment, driven largely by stronger-than-expected performance from Amazon Web Services. Cloud growth and resilient demand have become central to the market narrative, alongside expectations that AI-related workloads will scale further in 2026. The commentary also highlights investor focus on valuation, operating margins, capital expenditure discipline, and the advertising business, while pointing to longer-term optionality from logistics automation, AI monetisation, satellite connectivity, and potential pricing changes across the Prime ecosystem.

Key points

  • AWS growth exceeded expectations, supporting confidence ahead of Q4 earnings.
  • Investor sentiment is closely tied to cloud capacity expansion and sustained demand.
  • AI-driven workloads are expected to be a major factor shaping AWS performance in 2026.
  • Amazon’s valuation is viewed as relatively modest compared with long-term earnings potential.
  • Profitability drivers include margin expansion, capex discipline, and advertising growth.

Why this matters

Amazon’s cloud performance is increasingly important for investors assessing earnings quality and long-term growth. AWS sits at the intersection of cloud infrastructure and AI adoption, making its trajectory relevant for enterprise customers, developers, and the broader digital economy. For markets, the balance between continued investment and margin improvement will be key in determining whether stronger cloud momentum can translate into sustained shareholder value.

What to watch next

  • Fourth-quarter earnings results and updated guidance for AWS growth.
  • Signals on AI workload scaling and related infrastructure investment.
  • Developments in operating margins, capital expenditure, and advertising revenue.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Abu Dhabi, United Arab Emirates – February 05, 2026: Amazon (NASDAQ: AMZN) is entering its fourth-quarter earnings period with improving investor confidence, supported by a strong performance in the previous quarter and growing optimism around its cloud computing division, Amazon Web Services (AWS).

Cloud momentum has been a key driver of sentiment, with AWS growth coming in ahead of expectations and clear signs that demand remains resilient as capacity continues to expand.

Lale Akoner Global Markets Analyst At Etoro 1
Lale Akoner Global Markets Analyst At Etoro

Commenting on the outlook, Lale Akoner, Global Market Analyst, said:
“Momentum in AWS has been a major positive for Amazon, with cloud growth exceeding expectations and demand remaining healthy as capacity scales. This has played an important role in strengthening investor confidence heading into the fourth quarter.”

Looking ahead, 2026 is expected to be a pivotal year for AWS, particularly as AI-related workloads continue to scale. Investors are increasingly focused on whether accelerating cloud growth can translate into stronger earnings momentum and support a higher valuation. At current levels, Amazon shares trade at a relatively modest multiple of long-term earnings, further contributing to the improving sentiment.

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Beyond cloud, market attention is also centred on Amazon’s path to higher profitability. This includes potential operating margin expansion, continued discipline around capital expenditure, and sustained growth in the advertising business.

Over the longer term, additional upside could come from logistics automation, broader monetisation of AI across consumer products, new revenue streams such as satellite internet, and the potential for future Prime subscription price increases.

Media Contact:
PR@etoro.com

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

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Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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