Donitza Sokova, Bloomberg cross-asset reporter who breaks down major market movers. She walks through Amazon’s stock dip after a $200B AI-focused spend plan. She also covers MicroStrategy’s Bitcoin-driven losses and the selloff in alternative asset managers like Ares over AI exposure. Short, sharp market-moving headlines and reactions in multiple quick takes.
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Amazon's Huge AI Spend Spooks Investors
Amazon's plan to spend $200 billion on data centers, chips and equipment alarmed investors and pressured the stock.
Donitza Sokova says the spending raises concerns that AI investment will weigh on near-term profits.
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Lower Guidance Amplifies Selling Pressure
Amazon guided operating income much lower than analysts expected for the quarter, intensifying the selloff.
Donitza notes fragile sentiment after heavy spending disclosures from other big tech names.
insights INSIGHT
Fragile Tech Sentiment After AI Spending
Tech sentiment is fragile after heavy AI-related spending from Microsoft, Alphabet and Amazon.
Donitza ties broader tech declines to market worries about when AI investments will pay off.
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Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Amazon (AMZN) shares dipped in afterhours trading following earnings. The company said it plans to spend $200 billion this year on data centers, chips and other equipment, worrying investors the company’s colossal bet on artificial intelligence will pinch profits while it waits for investments to pay off.
- Strategy shares (MSTR) fell in extended hours trading as Bitcoin's plunge below $65,000 is intensifying the crisis rocking the digital-asset complex. In an earnings announcement Thursday, the Bitcoin-hoarding company confirmed a net loss of $12.4 billion for the fourth quarter, driven by the mark-to-market decline in its vast holdings. That pain deepened this week, as fresh market turmoil pushed the firm’s Bitcoin stash below its cumulative cost basis for the first time since 2023 — and erased the token’s post-election gains.
- Ares Management Corp. (ARES) shares ended the day lower in a broad selloff among alternative asset managers over fears of AI disruption, even as the firm reported that it ended the fourth quarter with record assets. Alternative investment firms are exposed to companies that make financial and legal software products at risk of being rendered obsolete by artificial intelligence. In a nod to those concerns, Ares noted in its earnings statement that exposure to the software industry — where stocks have plunged in recent days — represents 6% of total assets, and less than 9% of private credit.
Stock Movers