EARNINGS SEASON: AMAZON, ROBLOX, & MORE

Feb 12, 2026

They unpack Amazon's massive $200 billion AI bet and whether that spending will pay off. They contrast Roblox's rapid growth and $1 billion creator payouts with struggling console-centric gaming. They examine Spotify's ad sales weakness versus subscription gains and the rise of video podcasts and platform partnerships.

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INSIGHT

Prime Viewers Signal Advertising Push

Amazon disclosed 315 million Prime viewers, signaling a shift to 'viewer' metrics tied to advertising reach.
Evan Shapiro warns huge AI infrastructure spend ($200B) hasn't clearly shown bottom-line returns yet.

INSIGHT

AI Spending Is A Market-Focused Arms Race

Big Tech is escalating an AI spending arms race with widely different investment scales.
Evan Shapiro notes markets punish companies where AI spend doesn't yet translate to profit growth.

INSIGHT

Gaming Splits: Platform-First Versus Console

Gaming is splitting between platform-first live/mobile models and console-anchored businesses.
Evan Shapiro says live and mobile gaming generate most profitable revenue today.

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Amazon invests $200 billion in AI, Roblox pays out $1 billion to creators, and Spotify's ad sales decline. Welcome to another episode of The Media Odyssey Live!

In this live earnings coverage episode, Evan Shapiro and Marion Ranchet break down results from Amazon, Roblox, Sony, and Spotify. The conversation reveals a massive AI spending race across Big Tech, the dramatic shifts happening in gaming away from traditional consoles, and the ongoing struggles of audio advertising. Rather than celebrating growth numbers, the hosts examine what the investments and losses actually mean for each company's long-term strategy and whether the spending will pay off.

The episode is a reality check on how companies are pouring unprecedented amounts into AI infrastructure while some core businesses struggle, and how the gaming industry is splitting between platform-first models and traditional console-dependent approaches.

Key Takeaways:

1. Amazon Hits $200 Billion in AI Investment With Mixed Results

Amazon announced a $200 billion AI infrastructure investment for next year, the highest among Big Tech companies covered in recent earnings (compared to Apple's $15 billion, Microsoft's over $100 billion, and Meta's close to $140 billion).

2. AWS is growing, but the Stock Response is Muted

AWS grew 24% and advertising continued at 20%+ growth, but net income only grew 6%. Amazon reported 315 million Prime viewers, their first subscriber disclosure in two years. Amazon's stock response was muted despite strong AWS and e-commerce performance, signaling market concern about whether the massive AI investment will show returns.

3. Roblox Stands Apart from Console-Dependent Models

Sony and Microsoft's gaming divisions both had bad fourth quarters, with Sony reporting minus 4% in gaming sales. Meanwhile, Roblox had a massive year and fourth quarter, reporting 144 million daily active users (35% under 13, 38% ages 13-17, and 27% over 18). Roblox paid out over $1 billion to creators in 2025 but has never been profitable. Most profitable gaming is either mobile or live gaming, and 65% of all in-game advertising is generated by Roblox. Microsoft's $70 billion Activision acquisition is 75% live gaming, not console business.

4. Spotify's Ad Sales Declined 4% Despite Subscription Growth

Spotify's ad sales were down 4% in Q4 year-over-year, despite Q4 being the best ad sales quarter of the year. However, subscription revenue grew 14% and Spotify has the least churnable subscription in all media.

5. Video Podcast Consumption is being Vital

Video podcast consumption grew over 90%. The number one podcasting platform on Earth is YouTube, with a billion people watching YouTube podcasts on TV every month. Overall, about a third of total podcast consumption is split between Spotify, Apple, and YouTube, with YouTube leading.

6. Netflix and Spotify Strike Video Podcast Deal

Spotify announced a deal with Netflix to distribute video podcasts, including The Ringer and Bill Simmons content. The deal makes Spotify's entire video strategy potentially break even or profitable immediately. However, the exclusivity nature of the deal means podcasts on Netflix cannot be on YouTube, which some view as shortsighted given YouTube's dominance in video podcasting. The deal reflects Netflix's attempt to become a daily touchpoint and steal the podcasting crown from YouTube.

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Connect with us on Linkedin:

Evan Shapiro - https://www.linkedin.com/in/eshap-media-cartographer/

Marion Ranchet - https://www.linkedin.com/in/marionranchet/

The Media Odyssey Podcast - https://www.linkedin.com/company/the-media-odyssey-podcast

(00:00) - Introduction and Catching Up
(00:33) - Earnings Season Overview
(01:37) - Amazon's Earnings Breakdown
(03:38) - AI Investments and Market Reactions
(08:32) - Gaming Industry Insights
(10:13) - Roblox and the Future of Gaming
(19:01) - Sony's Performance and Strategic Choices
(20:36) - Sony's Resilience and Music Business Growth
(21:24) - Spotify's Evolution and Challenges
(23:40) - Spotify's Advertising Struggles and Video Strategy
(26:40) - Stream TV Europe and Upcoming Events
(28:35) - Q&A and Final Thoughts