Amazon CEO Andy Jassy speaks at the Bloomberg Technology Summit in San Francisco on June 8, 2022.
David Paul Morris | Bloomberg | Getty Images
Amazon is slated to report fourth-quarter earnings Thursday after the market close.
Here’s what analysts are expecting:
Earnings: $1.49 per share expected, according to LSEG
Revenue: $187.3 billion expected, according to LSEG
Wall Street is also watching several other numbers in the report:
Amazon Web Services: $28.8 billion, according to StreetAccount
Advertising: $17.4 billion, according to StreetAccount
Analysts are projecting revenue growth of roughly 10% during the quarter, which includes results from the holiday shopping season. Online spending jumped nearly 9% to $241.1 billion in November and December, according to data from Adobe Analytics, which tracks sales on retailers’ websites. That was slightly higher than analysts’ forecast for sales of $240.8 billion.
Operating income during the fourth quarter is expected to grow 44% year over year to roughly $19 billion, according to FactSet estimates.
The company’s bottom line has benefited from CEO Andy Jassy’s cost-cutting campaign, which has been ongoing since late 2022. The company laid off more than 27,000 employees in 2022 and 2023, and it’s had smaller rounds of job cuts in 2024 that have stretched into this year. Amazon has also continued to wind down some of its more experimental and unprofitable initiatives.
Amazon rounds out a busy earnings period for the top tech companies. Google parent Alphabet on Tuesday posted disappointing fourth-quarter revenue. Apple, Meta and Microsoft reported results last week.
Wall Street will be looking for any commentary from Amazon about the impact of President Donald Trump’s recently announced tariffs on its business. Tariffs on Canada and Mexico are now on hold for one month, while the import taxes remain in place for China.
The company has long connected Chinese manufacturers to American shoppers through its sprawling third-party marketplace. By some estimates, China-based merchants outnumber American sellers on the platform, according to data from Marketplace Pulse.
Amazon’s first-party retail business has the highest exposure to Trump’s tariffs on Chinese imports among the e-commerce companies it tracks, analysts at Morgan Stanley wrote in a Monday note. The analysts estimate that 25% of products sold by Amazon’s first-party retail business come direct from China.
Over the years, Amazon has moved away from first-party sales to third-party sellers, which now account for 60% of products sold on the site.
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During the fourth quarter, Amazon launched its competitor to Temu and Shein, called Haul, which offers low-cost apparel, jewelry, electronics and other items. Trump’s tariffs also took aim at the “de minimis” trade exemption that has allowed direct-from-China services like Amazon Haul to bypass duties and taxes on packages worth less than $800. Prices on Amazon Haul could rise as a result of Trump shutting the de minimis loophole.
The company’s investments in artificial intelligence are also likely to be an area of focus.
Amazon planned to spend about $75 billion on capex in 2024, Jassy said last quarter, adding that he suspected the company would spend more in 2025. The jump in spending is primarily being driven by AI investments, Jassy said.
An AI model created by Chinese startup DeepSeek has captured headlines and roiled markets in recent weeks. DeepSeek claims it only took two months and less than $6 million to develop its R1 model, which it says rivals OpenAI’s o1. The announcement caught Wall Street and Silicon Valley by surprise, challenging the assumption that tech companies must spend heavily on chips and data centers in order to build cutting-edge AI models.
Amazon has been racing to release new AI products and features as it looks to keep up with its competitors. The company in December launched a new set of AI models, called Nova. The company also offers Bedrock, which lets users access AI models from Amazon and others, and an AI chatbot for shopping called Rufus.
The company is expected to release an updated version of its Alexa digital assistant with AI features. It first previewed the redesigned Alexa in 2023, though the rollout has reportedly been slowed by technical challenges, according to Bloomberg. In October, Jassy said the new Alexa could launch “in the near future.”
Every weekday, the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. 1. Stocks were higher Friday, led by a rebound in Big Tech as the AI trade attempted to regain momentum. Nvidia stock jumped nearly 3% after Bernstein noted it is trading at 25 times forward earnings, landing it in the eleventh percentile of valuation over the past decade. That’s cheap for the AI chip leader. Market strength carried across the semiconductor group, with Broadcom , AMD , and Micron all charging higher. A stock that did not participate in the rally was Nike . Shares of the sneaker and sportswear maker are down 9.5% a day after it reported solid earnings results but disappointing guidance. 2. Jim also highlighted the standout year for Wells Fargo under CEO Charlie Scharf. “Don’t bet against Charlie,” he said after The Wall Street Journal reported late Thursday that the bank climbed to No. 7 in the U.S. M & A league table, compared to No. 14 last year. The bank advised on high-profile deals, including Netflix ‘s bid for Warner Brothers and Union Pacific ‘s bid for Norfolk Southern . Financial stocks have been on a tear this year, prompting us on Friday to trim our position in Capital One and lock in significant gains. On Thursday, we increased the price target for Capital One to $270 from $250 and downgraded our rating to a 2. In addition, we increased Goldman Sachs ‘ price target to $925 from $850 and Wells Fargo’s price target to $96 from $90. 3. Boeing shares climbed 2.6% on Friday after JPMorgan reiterated the stock as a top pick while increasing its price target to $245 from $240, implying a 15% upside from its current price of $213 per share. Analysts argue the aerospace manufacturer’s path to growth is simple: build more planes and deliver them. While cash flow expectations have come down, JPMorgan believes there’s visibility to at least $10 billion by the end of the decade. Jim said he likes Friday’s stock price for a buy. He called Boeing a “long-term idea” given the strength in travel. 4. Stocks covered in Friday’s rapid fire at the end of the video were: FedEx , Conagra Brands , KB Home , Oracle , and CoreWeave . (Jim Cramer’s Charitable Trust is long NVDA, AVGO, WFC, GS, COF, BA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Sundar Pichai, chief executive officer of Alphabet Inc., during the Bloomberg Tech conference in San Francisco, California, US, on Wednesday, June 4, 2025.
David Paul Morris | Bloomberg | Getty Images
With the AI talent wars heating up between companies like OpenAI, Meta and Anthropic, one way Google has been competing is by aggressively rehiring former employees.
Some 20% of software engineers working on artificial intelligence that Google hired in 2025 were so-called boomerang employees, an increase from prior years, CNBC has learned. A Google spokesperson confirmed the statistic remains accurate as of December, and said the company saw a jump in the number of AI researchers coming from major competitors compared to 2024.
“We’re energized by our momentum, compute, and talent — engineers want to work here to keep building groundbreaking products,” the spokesperson said in a statement.
John Casey, Google’s head of compensation, recently told employees in a meeting about the rehiring. Casey said AI-focused software engineers are drawn to Google’s deep pockets and hefty computational infrastructure that’s needed to perform advanced AI work, according to audio reviewed by CNBC.
Google has a large pool of ex-employees to mine, particularly after its largest ever round of layoffs in early 2023, when parent company Alphabet cut 12,000 jobs, reducing headcount by 6%. That followed a market downturn driven by soaring inflation and rising interest rates. Google has since continued with rolling layoffs and buyouts.
Across the industry, employee boomerangs are up, according to data published earlier this year by ADP Research, with the sector it classifies as information showing the starkest numbers.
Google has been racing to catch up in generative AI after a slow start that followed OpenAI’s release of ChatGPT in late 2022. After fumbling a number of product rollouts, the company has bounced back this year, thanks to hefty investments in AI infrastructure and the success of its Gemini app. Google announced its latest model, Gemini 3, last month.
Alphabet’s stock price is up more than 60% this year, outperforming all of its megacap peers.
As a historical hotbed of engineering and innovation, Google has long been a place where competitors have turned to try and poach talent. That’s still the case.
Earlier this year, Microsoft hired around two dozen employees from Google’s DeepMind AI research lab, CNBC reported in July. OpenAI, meanwhile, has opened its wallets wide, along with Meta. OpenAI CEO Sam Altman told employees in June that Meta had been offering $100 million signing bonuses, and that he was aggressively trying to retain staffers.
Late last year, Google brought back a major figure in AI: Noam Shazeer.
Shazeer and Daniel De Freitas left Google in 2021 to start AI platform Character.AI, reportedly departing after Google rebuffed their attempts to try and get the company to push its internal chatbot forward.
Along with other members of the Character.AI research team, Shazeer and De Freitas rejoined DeepMind in August 2024 under a licensing deal for the startup’s technology.
Over the last year, Google has taken more risks, shipping products more quickly, even if they aren’t viewed as completely ready. Google has also made a companywide effort to remove bureaucracy, enacting widespread employee buyouts and eliminating more than one-third of its managers overseeing small teams, CNBC reported in August.
Google co-founder Sergey Brin, who came out of retirement in 2023, has at times personally reached out to prospective candidates to recruit them, according to people familiar with the matter who asked not to be named because they weren’t authorized to speak to the media. Meta CEO Mark Zuckerberg has also reportedly reached out to researchers on behalf of his company.
The companies said the deal is an expansion of their existing strategic partnership and will deepen their engineering collaboration.
Palo Alto Networks is now using Google’s Gemini artificial intelligence models to power its copilots, and it is also using Google Cloud’s Vertex AI platform, according to a release.
“Every board is asking how to harness AI’s power without exposing the business to new threats,” BJ Jenkins, president of Palo Alto Networks, said in a statement. “This partnership answers that question.”
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Palo Alto Networks, which offers a range of cybersecurity products, already has more than 75 joint integrations with Google Cloud and has completed $2 billion in sales through the Google Cloud Marketplace.
As part of the new phase of the partnership, Palo Alto Networks customers will be able to protect live AI workloads and data on Google Cloud, maintain security policies, accelerate Google Cloud adoption and simplify and unify their security solutions, the companies said.
Shares of Palo Alto Networks were up 1% on Friday. Google shares were mostly flat.
“This latest expansion of our partnership will ensure that our joint customers have access to the right solutions to secure their most critical AI infrastructure and develop new AI agents with security built in from the start,” Google Cloud President Matt Renner said in a statement.