Amazon has been looking to catch up to OpenAI and Anthropic on frontier AI with its Nova models. AI chief Peter DeSantis said he hopes Amazon is in the conversation about leading models "in the coming year.
The stock has been buffeted by a combination of AI CapEx concerns, a high-profile rocket explosion, and a broader risk-off mood that's weighed on even the strongest names in tech. It's been a frustrating sell-off given the recent all-time highs the stock had been printing.
Amazon invested in and launched a partnership with artificial intelligence startup Odyssey, the Financial Times reported Wednesday (June 17). The tech giant took part in a $310 million funding round for Odyssey, which builds AI systems designed to simulate the physical world, the report said.
Amazon remains a compelling buy, combining rapid growth with surprisingly reasonable valuation multiples. Q1 2026 revenue rose 16.6% to $181.52B, with net income nearly doubling to $30.26B and strong cash flow expansion. AWS revenue surged 28.4% year-over-year, now driving 59.4% of segment profits and justifying major capital allocation.
SpaceX shares popped more than 4% on Wednesday in premarket trading. The space and AI company's stock has surged around 50% since its blockbuster IPO on Friday.
Amazon remains a Strong Buy as fundamentals improve, despite recent underperformance versus the benchmark. Double-digit revenue growth across core segments and AWS's 28% YoY growth reinforce AMZN's diversified business model and moat. Operating cash flow surged 30% YoY, supporting Amazon's ambitious AI and capex initiatives, including major partnerships with Nvidia and Anthropic.
Plus, the U.S.-Iran deal lets Tehran sell oil immediately, and a former drug dealer's shows make millions without Hollywood.
Shares of Elon Musk's SpaceX soared more than 14% on Tuesday, lifting its value higher than Amazon and briefly Microsoft just days after its debut.
I keep buying Amazon (NASDAQ:AMZN | AMZN Price Prediction) and I am not going to apologize for it.
SpaceX may soon challenge Microsoft as the fourth-largest company, falling behind the software giant's market value of $2.92 trillion. Apple is the next largest with a market capitalization of $4.3 trillion, followed by Alphabet at $4.4 trillion.
This is a developing story.
SpaceX passed Amazon to become the fifth-most valuable company in the world, after its stock price climbed 20% on Monday and more than 8% in early trading Tuesday, bringing its valuation to more than $2.7 trillion.