Episode summary
Amazon Selloff on Massive Spend; Bitcoin Traders Buy Dip | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 16 min
Summary
Amazon’s sharp selloff set the tone for a risk-off morning as investors digested the company’s plan to spend $200 billion this year on AI data centers, chips, and other equipment. The hosts and a Bloomberg Intelligence analyst said the spending underscores how aggressively big tech is pursuing AI infrastructure, even as the market questions when those investments will translate into profit. The discussion broadened to the four largest U.S. tech companies, which Bloomberg News calculated plan to spend $650 billion on capex this year, a level that may force investors to rethink premium valuations for asset-light businesses.
Bitcoin was also caught in the broader turbulence. A Bloomberg market roundup said the token briefly suffered a more than 50% retreat from its October peak before rebounding, with selling tied to liquidations, leverage unwinds, and wider market stress. A panelist also framed the move as a possible crisis of faith in crypto after the recent rout.
The episode also covered U.S. geopolitics and Washington headlines, including indirect Iran-U.S. nuclear talks mediated by Oman, President Trump’s push for a new arms treaty with Russia, a new prescription-drug discount website, and the still-unresolved New Jersey House primary and Gateway tunnel funding fight.
Key takeaways
- Amazon’s $200 billion capex plan, aimed mostly at AWS and AI workloads, drove shares down almost 8% and revived concerns about payback on AI spending.
- Bloomberg News said Alphabet, Meta, Microsoft, and Amazon together plan about $650 billion of capex this year, a possible high-water mark for corporate spending.
- A Bloomberg market roundup said Bitcoin briefly fell more than 50% from its October peak before a rebound, as leveraged bets were unwound and confidence weakened.
- The hosts said the AI disruption trade has pressured the Nasdaq and broader risk assets, not just crypto.
- President Trump’s new trumprx.gov site aims to cut drug costs by selling more than 40 medications directly to consumers.
Notable quotes
“$650 billion. That is how much four of the biggest US tech companies plan to spend this year on capital expenditures”
“it will be worth it”
“the lion share of that demand is still yet to come in the middle of that barbell and that will come over time”
“Now, selloff briefly dragged Bitcoin to a more than 50% retreat from the October peak”
“Rather than extend New START, we should have our nuclear experts work on a new, improved, and modernized treaty”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm Karen Moscow. Here are the stories we're following today.
Karen, we start with big tech and a big number. $650 billion. That is how much four of the biggest US tech companies plan to spend this year on capital expenditures.
Bloomberg News has calculated the spending planned by Alphabet, Meta Platforms, Microsoft, and Amazon will set a high water mark for spending by any single corporation in any one of the last 10 years. Shares in Amazon fell after the e-commerce giant announced its latest earnings and plans to spend 200 billion this year on AI data centers, chips, and other equipment. CEO Andy Jasse says the money will predominantly go to the company's cloud unit, and most of that spending will be for AI workloads.
Speaking on the earnings call, Jasse said it will be worth it.
When I look at this um what's happening, it's kind of unbelievable if you look at the demand of what you're seeing already with AI, but the lion share of that demand is still yet to come in the middle of that barbell and that will come over time.
And Amazon shares are down almost 8% after Andy Jasse spoke with the spending set away on profits. Punam Goyle covers Amazon for Bloomberg Intelligence. They need to invest, right?
We know that Amazon has to continue to invest in cloud services. It needs to invest in AI. So, there's a lot of catch-up that needs to be done here.
I think the long run narrative here is still good. The underlying results were solid across both AWS and retail. And Bloomberg intelligence analyst Punam Goyle notes that some of Amazon's capital expenditures will go toward its effort to compete with SpaceX's Starlink internet service by placing satellites in low Earth orbit.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- amazon capex
- ai spending by big tech
- bitcoin volatility
- bitcoin selloff
- nuclear arms treaty
Companies and tickers mentioned
- AMZN
- Amazon.com
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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