On Tuesday, Amazon recorded the steepest pullback among the so-called Magnificent Seven technology stocks, driving sector sentiment lower. The company’s shares underperformed peers by a significant margin as investors rotated away from mega­cap growth names. The technology-heavy Nasdaq Composite fell 1.4% on the session, with Amazon responsible for over one quarter of that decline. Market analysts attributed the underperformance to profit-taking after a recent rally and growing concerns about near-term margin pressures from elevated AI capital expenditures.

In third-quarter filings, hedge fund founders Philippe Laffont and Steven Schonfeld reduced their combined Amazon holdings by approximately 8% while reallocating those proceeds into the iShares Bitcoin Trust ETF. Their move reflects a wider trend among allocators seeking asymmetric upside in digital assets: Wall Street strategists now forecast that Bitcoin’s market value could expand to $3 trillion–$13 trillion, implying potential gains of up to 13,500%. Notwithstanding their reductions, both managers remain Amazon shareholders, and consensus Wall Street models still project roughly 19% earnings growth at the company over the next 12 months, underpinned by deepening AI integration across retail and cloud operations.

Amazon has officially launched its first Amazon Now quick-commerce hub in the U.K., offering fresh groceries and everyday essentials to Southwark customers in as little as 30 minutes. The London site builds on pilots that began in May 2025 in Bangalore and the UAE, and follows similar ultrafast delivery trials in Seattle and Philadelphia using compact, purpose-built facilities. By situating micro-fulfillment centers close to dense urban neighborhoods, Amazon aims to reduce delivery partner travel distances, enhance safety for order pickers, and capture incremental sales in the burgeoning on-demand grocery market.

Amazon’s third-quarter financial report surpassed consensus estimates on both revenues and earnings per share. Total revenue grew 14% year-over-year, driven by a 21% increase in Amazon Web Services (AWS) revenue, which reached $33 billion, and a 17% jump in advertising revenue to $17.7 billion. Operating income in the report was buoyed by improved margins in the cloud segment, which offset continued investment in data centers and AI infrastructure. Management reiterated full-year operating-income targets and reaffirmed its outlook for double-digit core-business growth into 2026, signaling confidence in the company’s long-term strategy.