andy jassy, ceo of amazon. with me here in new york, i appreciate the time. >> thanks for having. >> me, kelly. >> thanks to amazon ceo andy jassy and jon fortt. thank you as well for bringing that to us. really appreciate we won't blame that interview for tanking the market, which has taken a move lower here, and we'll get more on that more broadly in a moment. but let's get some quick reaction to what we just heard from our next guest, who's bullish on amazon with a 30% higher price target from here at 280, expects the company to be a big winner in ai, also expects them to hit the trillion dollar revenue mark by 2028. brian nowak is senior internet equity research analyst at morgan stanley. brian, welcome to you. listen, so a big move here. albeit alexa's revamp had been delayed for quite some time, it was promised back in 2023. a lot of the features they're showing off do involve, you know, the usage of other apps or video elements that people might not have access to right away. so a few bumps here as they

amazon web services — and here's a figure to conjure with $100 billion is how much amazon boss andy jassyn consumers keep and there is no spending and there is no indication in their outlook iii!!!— that there are fundamental the health of the issues with the health of the consumer or the consumer they would outlook or that they would be facing it really a :.:=: of �* business, icircle of their business. and largest circle of their business. and largest source of their so, i think became a bit tidy expectations became a bit tidy in recent weeks and we saw in their to run up in their share price over the last of weeks. now, i think the reality has set in that they are some that they are facing some headway as i from the that was a 7 that was a main currency. that was a main factor for weaker factor cited for the weaker outlook for wine. this japan's prime minister this to hold his first meeting with president trump. the $15 billion dollar takeover of america's biggest so will president trump see things differently? 0ur asia business reporter mariko 0i has more. well, president trump has pr

andy jassy calling it a generational opportunity. >> yeah.u know, i think we were all looking for. >> a stronger outlook and guidance. >> than. >> was provided. you know, we didn't. >> really get. >> a good glimpse of what full year is going to look like. some of the commentary around aws was it was going to be lumpy, both from a growth perspective and a margin perspective. so that in combination with comments that the second half should be kind of better supply chain constraint improvements and capacity improvement, i think that the year is still set up pretty positively for aws and ai growth. now, on the capex front, we seem to be in this era where if you don't spend now, you risk losing share later. so while capex is up, i actually view this as a positive that they see a huge opportunity. they've been a great steward of capital over the years. and when they put capex out, they tend to generate the revenue over time. so given their track record, if they're putting this kind of capex out, that shows the type of opportunity they see in the fu

andy jassy, the ceo, talking about some of the thinking.f that capex spending is on ai for aws. he says the way the cash cycle works here, so the faster we grow, the more we end up spending, because we have to procure data center hardware and chips says they are indeed seeing those signals of demand. and when aws is expanding capex, particularly in what he describes as a once in a lifetime business opportunity that ai represents, he says, i actually think it's quite a good thing on that level of spending. he also talked about some of the constraints on chips, which could be helpful for nvidia. but guys, bottom line, the mega-cap spending spree is continuing here. so $105. >> billion in capex for fiscal 25, kate. that's i mean, wasn't expected to be 85. >> yeah, about 86. so it's significantly higher than what the street was looking for. i haven't looked at the shares after hours after those comments. but i also wonder what it's doing to nvidia. but it does talk about the level that they are planning to spend. it's the last of the mega caps

and that's really the side that andy jassy sits on. and amazon and microsoft and alphabet, we heard as well over the past few days. and i think what was interesting is jassy's comments about deep tech were exactly to that. but i thought he did a very good job, perhaps, versus some of the other companies we've heard from so far in justifying that capex spend, because i think the stock would have been down a lot more than it was if the market wasn't happy with that. you know, he said this, as you heard from the sound byte, there a once in a lifetime opportunity. and it's important to put this in context. yes, the $100 billion figure is more than microsoft has committed and more than alphabet has committed. but amazon also is the biggest cloud player in the world. and so, you know, it's kind of, you know, reasons. yeah, there's different needs. and we have heard also on the call that there are supply constraints around the availability of chips, and that this capex number is really a response to demand. so i think the market was probably o

before we go, don't miss a rare first on cnbc interview with amazon ceo andy jassy tomorrow.will take place right here on the exchange around 1 p.m. eastern. very much looking forward to that and coming up. nvidia is down nearly 10% in five days now and tracking for back to back weekly losses for the first time this year. but is nvidia's pain china's gain after the break? why tariffs are supercharging china's ai growth. and as we head to break, check out shares of meta on pace for a six day losing streak. remember, this follows its record setting rally of 20 straight days of gains. it's now down about 11% gains. it's now down about 11% in this recent sli (♪♪) discover alaska aboard riviera, the only true foodie ship sailing the region. where breathtaking natural wonders meet unmatched service from the heart. with one chef for every ten guests, indulge in gourmet dining on an ultra-premium small ship. scenic days, endless memories. call now for amazing savings. book now at oceaniacruises.com do you have a life insurance policy you no longer need? now you can sell your policy -

you heard andy jassy say will be spent on ai. there's they're spending over time. and you can see how much it's gone up. and then we have this chart from melius this morning that i think just wraps it up because we've talked so often, obviously, now that we've gotten earnings from microsoft, from meta, from alphabet, and of course from amazon, well, you can see no one came close to even the same spending. they all went up. and in fact, more than had been anticipated by the analysts who follow these companies. so you're talking about almost incrementally, another 25 billion above what had been anticipated. and there's you know, they he's got microsoft at 95 billion. and all the rest are sort of as reported as well. meta 63 there's alphabet. and then of course you add in amazon. now not all of amazon is going to be in ai. but what does that mean for nvidia has been a key question, particularly given that stocks sell off after the deep sea news. >> well, it has to be good news right nvidia marvell broadcom. >> broadcom all of. >> them at least for a trade after they s

by the way, don't miss john ford's extended first on cnbc interview with amazon's andy jassy. >> shares of workday, a big mover rallying after earnings and revenue, topped expectations. the company also noting that d.o.j. reforms of the federal government offer a, quote, tremendous opportunity. joining us now exclusively to talk about all of it is workday ceo carl eschenbach. carl, welcome. nice to have you. >> hi, sarah. good morning. >> how are you doing? thanks for having us. >> doing well, not as well as you. stock was up 12% earlier. i think it's still up over 7%. so what is the story here? what's driving it? >> yeah, thanks. >> so listen. >> we. >> had a really strong finish. >> to fy 25. >> our q4 results were really strong. >> and i think it's. >> driven by our value. proposition that only gets stronger each and every day. customers continue to look towards. workday to manage. >> their most. >> precious assets their their. >> people and. their money. >> and we. >> continue to see. workday be front and. >> center as people move towards. >> this world. >> of agentic. >>

the event started with ceo andy jassi and talking about their investment in ai and not sure if there'swith the greater investment in ai than amazon. he highlighted they're making their own chips and going for ukrainian chips and also talking about amazon they've got over 1,000 generative ai applications they've built or are in the process of building and then the focus was all on alexa and that's what folks were there to see. alexa plus is the brand new version and really overhauled and just going to have a very different interface and consumer and conversations natch value registering tone and mood and going to say alexa once to get the conversation started. you showed an example, but it's supposed to be a conversation that's digital. >> can you book our favorite friday dinner spot. >> sure, i can make a reservation. >> oh, and text the sitter and add to the calendar. madison: imagine the applause after that really impressive stuff. alexa plus is built on a model ago not ick system and they say whatever -- agnostic system and they've partnered with anthropic for this and compatible wi

here's andy jassy on the ai outlook for the business. >> ai represents for sure the biggest opportunity since cloud. probably the biggest technology shift an opportunity in business since the opportunity -- since the internet. both our business, our customers, and shareholders will be happy, medium to long-term, that we are pursuing the capital opportunity and the business opportunity in ai. tom: joining me is bloomberg intelligence. what did investors not like? on one level, this is a nice problem to have. so much demand yet they cannot meet it. >> the fickle nature of the markets at the moment. they've gotten used to amazon and big tech companies beating and raising a now we have a be just about in line with expectations for the next quarter. as you say, it's a good balance of problems. it's not a demand problem. it's a supply problem. it's one that they don't expect to change until the second half of 2025. may have another couple of quarters. growing 19% year on year. the biggest business out there. not too shabby. there may be some lumpiness in that number until we had the second ha

and perhaps more importantly, ceo with andy jassy heads into earnings with an 8% gain year to date, that's the second best magnificent seven performer this year behind meta. overall revenue expected to jump 10% and watch for its aws cloud services sales. that will be a key figure x. wall street, no doubt, will also be listening to hear how much amazon will spend on capital expenditure, right? cap-ex. fox business has learned february 26th amazon will make a major announcement at its devices event that will include hardware and software improvements. the expectation is that the a.i. version of alexa will be revealed which brings us to the breaking news on a bigger scale here. a.i. data center stocks are hopping. super a micro popping right now -- super micro -- 4.8%. it's vaulted to the top of the nasdaq. dell and globalx data center e, f humming along as well -- etf. and nvidia with is the best performer right now. you can see it's up about 2.33% at the moment followed by goldman sachs, mcdonald's, caterpillar, jpmorgan chase and walt disney. here's the news breaking today that has the a.i

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i mean, and we just heard from andy jassy last hour who basically reiterated that they have huge demand for nvidia chips. and he said, basically, if we had more, we could do more. so what. >> are you telling me? you're telling me that the fundamental story is intact. >> for nvidia. >> but the problem is. >> you. >> look at the you look at the stock and it people have been on the sidelines for the past eight months. you raised gross margins are coming down. we know that management already warned us restrictions are a big overhang for guidance. and i think that's why you've seen especially buy side estimates. they've come down for the first time in two years to fall in line with consensus. so the big number would be guidance at $42 billion. that's what we're expecting. but you raised gross margins u.s. exports the air pocket going from the old iteration of the hopper. chip or architect to the new stuff, the blackwell and then the blackwell ultra and then eventually the rubin. so they're always going to have this transition period, too. but overall demand is still intact. i just think that

. >> that was amazon ceo andy jassy on the earnings call last quarter, justifying his company's aggressives around aws and gen ai spending on that expected to surge past $75 billion in the year ahead. when we're talking about capex. welcome back to worldwide exchange i'm frank colin. coming up. we're going to dig into big tech's spending surge and the possible winners and the losers of this ai arms race. but first a check on us stock futures with the major indices. and the russell coming off a two day win streak. taking a look see the major indices up across the board. all three of them up about a quarter of a percent. just a little bit more here for the dow looks like it would open up about 150 points higher right now. we'll take a look at the nasdaq 100 leaders right now taking a look at those. you see honeywell right here at the top of the list. we just told you about a wall street journal report. the company plans to spin off its different business units astrazeneca. those shares up about 3% following earnings. padini holdings, microstrategy and applovin rounding out the top five. look

they had to order an uber at one point, ceo andy jassy describing the effort as re-architecting alexa's brain here. here's what he told john ford. >> we're really excited to announce alexa. plus today, it's our next generation of personal assistant. she's more she's smarter, she's more capable, she's more useful. and you can do all the things you've been doing with alexa for ten years, but just every single one of those functions gets better with generative ai. the way we built it in. >> this was a major technology overhaul for amazon, and executives called alexa model agnostic. they are using amazon's own nova model. plus, they're also using startup anthropic, which they're a major investor, and jassy highlighting this as practical ai and real world ai. and also, if alexa and the new alexa is anywhere near as useful as they made it seem in the demo, this could help drive device sales and prime subscriptions. it is going to be available next month on most of the 600 million devices out there. the stock though higher on the back of this news. scott. >> all right kate appreciate that. tha

andy jassy has talked about cutting middle-management, replaced with machine learning tools to reducets. how much are you looking for that type of announcement today? scott: we had 22 disciplines across the board for these companies out of the pandemic, and we have gone back into investment mode, but it is nonhuman capital investment and we will continue to hear that from companies, including becoming more efficient with human capital and those being redeployed into capital infrastructure, so i don't expect meaningful leverage from amazon in terms of that, but they are benefiting from a shift in their business in terms of where the web services business is so big now and growing so much faster that they have a natural lift head of operating profits over time, so amazon over the next five years, we expect profits to grow at over 20%, which is well worth them. annmarie: morgan stanley says amazon's exposure to tariffs is higher than other e-commerce openings, what are you expect in on that front when it comes to the trade war between china and the u.s.? scott: i tried to wait and see, s

plus, don't miss my extended first on cnbc interview with amazon ceo andy jassy. tomorrow, 1 p.m. on the exchange. that's it for overtime. fast money starts now. >> live from the nasdaq. >> market site in the heart. >> of new york city's times square. this is. >> fast money. here's what's on tap tonight. risk off from tesla tanking to. bitcoin below 90. >> k to rates. >> rolling back. investors seem to be fleeing the momentum trades. will the pain continue and how should you play the moves. >> in nvidia on deck. the chip. >> giant and. >> ai darling gearing up to report. >> tomorrow night. what can we expect to hear from the company and how will markets react? plus, home depot breaks its comp sales losing streak. lilly gets a boost thanks to a price cut for zip code, and instacart does not deliver on earnings. how to trade that stock now i'm melissa lee, live from studio b at the nasdaq. on the desk tonight tim seymour, dan nathan, guy adami and mike co. but we start off with the wreckage of the risk on trade, the tech heavy nasdaq leading the market losses today, dropping for a f

still andy jassy tried to do the good messaging. we think every application will be reinvented with ai inside of it really doubling down on the promise of this. not enough. jonathan: it is a show me market for some of these names. border equities just about unchanged on the s&p. let's get stories elsewhere with your bloomberg brief. yahaira: israel defense force says it's air force did a strike in lebanese territory on two military sites. the site contains hezbollah records -- weapons was is a violation of the cease-fire agreement. dallas fed president lori logan has suggested that interest rates may already be near a neutral level of eliminating the need for further rate cuts even if inflation continues to cool. she said the fed would need to lower rates if the labor market deteriorated. take a look at porsche shares down in german trading. the luxury automaker says profits will slump this year. costs are mounting after executives misjudged how eager sports car drivers would be to turn electric. it turns out they are not so eager s

and i think, you know, andy jassy did a good job on the call last night.stments without having line of sight. we're there. so i think, i think you can still be comfortable, despite the just sticker shock of how high the numbers are. >> okay. so you look at the stock right now. we're going to flip the board around and show folks where amazon stands. what is your price target on this company? call it 12 months out from now. >> yeah i mean i mean, we took our target up last night to, to $250. and i think, you know the stock's trading i think this morning it's indicating a little bit below 30 times on a on a pe basis on a gaap earnings per share. i think this is a situation where that's that's a high multiple obviously for a stock. but they just grew operating income 82% in the last year. and we think that can at least go up by 20 to 30% for the next few years. and so that's kind of earnings growth we call growing into this valuation could certainly be higher over time. >> so you say 250 where. 232. what do you think the downside is at this point? >> oh, i mea

and meanwhile, amazon is still spending big to capture what andy jassy, the ceo, calls a once in a lifetimeis a multi-billion dollar run rate business within aws. they're upping capex by roughly 26% to north of $100 billion this year, mostly for ai. guys, back to you. >> what is your take on this push away from deep seek? you know, here we are talking about deep seek. but there's, you know, folks in washington and others who have genuine concerns, i think, i imagine, about whether some of this information is going back to the chinese and whatnot. and yet i was going to say amazon and their aws service is hosting deep seek, as is microsoft's azure. >> yeah, it's an interesting dynamic, andrew. so i would say the separation between deep seek the app. if you were to go on your phone and download deep seek, that's where some of the national security concerns come from, that the data that you're uploading, the queries, your location, things like that, personal data would be sent back to china in some capacity. so that's really where the worry comes from, the model that you're able to tweak. and