The Exchange Amazon Soars and What Happens If SNAP Stops? 10/31/25
Oct 31, 2025
Mackenzie Cigalos, a tech reporter specializing in big tech earnings and AI trends, teams up with Ron Josie, an internet analyst at Citi, to dive into Amazon's record-high earnings. They discuss the implications of AWS's re-acceleration and the strength of retail amidst changing landscapes. The conversation shifts to pressing societal issues, like the imminent SNAP funding cutoff affecting millions, examining the potential ripple effects on various industries. Tune in for insights on market dynamics, tech advancements, and economic pressures.
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AWS Reacceleration Drives Amazon Rally
- Amazon's Q3 showed AWS reaccelerating and convinced investors of its AI compute strategy.
- Andy Jassy pitched owning the compute backbone and Amazon is rapidly adding power and custom chips.
Power Became The New Bottleneck
- Amazon added 3.8 gigawatts of power in the past year and more is coming to meet AI demand.
- Power, not just chips, was a limiting factor and boosting power expands AWS's competitive seat at the table.
iPhone Upgrade Wave And Apple's AI Caution
- Apple benefits from a large 2020–21 upgrade cohort, supporting iPhone 17 momentum.
- Apple is cautious on AI spending, viewing it as less existential than for cloud rivals.