Happy Halloween, investors. Between Nvidia’s slate of announcements, the Magnificent 7 earnings, Fed rate cut and US-China deal, this week felt like a year. We’re closing it out with what may have been the most unexpectedly bullish signal all week out of Big Tech.

The market is finally remembering that Amazon is part of the Magnificent 7.

Following a blowout earnings report, the stock climbed more than 14% after hours to surpass the year-to-date gains of Apple and Meta, leapfrogging both names for the first time in months.

Here’s how Amazon performed in the third quarter: 

Total revenue climbed 13% compared to a year ago. 

Wall Street was also monitoring the company’s cloud revenue, which saw a 20.2% jump in the quarter, as well as revenue from Amazon Web Services, which beat expectations at $33 billion.  

AWS, according to CEO Andy Jassy, is growing at its fastest rate since 2022. 

He noted that AI demand continues to accelerate, and Amazon continues to work with key partners including Nvidia.

“You’re going to see us continue to be very aggressive in investing in capacity because we see the demand,” Jassy said on the earnings call. 

Meanwhile, Amazon’s capital expenditures continued to eat into its balance sheet. Free cash flow fell by more than 60% compared to a year ago.

That spending drag however doesn’t explain why Amazon has lagged the rest of the Magnificent 7 this year, given that most of them have equally ambitious capex plans. 

Amazon has trailed the group by a landslide since the pandemic and it hasn’t been close.

But if Amazon repeats the quarter it just wrapped up and Wall Street responds with the same enthusiasm, the stock could very well be poised for outperformance.

After all, even the most bearish investors seem likely to come around eventually to a business that’s banking $180 billion in a three month period.

📈Apple beat earnings for its 11th quarter in a row. The company reported steady demand for its products. The stock tumbled 5% within a minute of the announcement, but then rebounded more than 8% another 15 minutes later. (CNBC)

📺 Netflix announced a 10-for-1 stock split. Shares skyrocketed after hours on the news, and the split will take effect on November 17. The company now has over 300 million paid memberships. (Cision)

🥗 Chipotle stock entered a free fall. Shares tumbled after the company slashed its full-year forecast for same-store sales, and multiple Wall Street analysts cut their price targets. The stock traded as much as 19% lower Thursday. (CNBC)

📉 Meta stock fell 11% the day after its earnings miss. The company had said it plans to further increase AI spending for the rest of the year, and the market did not react well. Mark Zuckerberg said that spending is meant to keep up with demand for AI. (Yahoo Finance)

🗓October 31, 2014: The Bank of Japan sprung its “Halloween surprise” and unexpectedly started to expand its monetary easing program. The news jolted global markets and weakened the yen.

📰 I’m Phil Rosen, co-founder of Opening Bell Daily. I’ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine.

I write our flagship newsletter to prepare you for each trading day — unpacking markets, economic data and Wall Street with analysis you won’t find anywhere else.

Feedback? Reply to this email, ping me on X @philrosenn, or write me directly at [email protected].

*reAlpha Disclaimers: Actual savings vary and are not guaranteed. Not available in all states. Terms apply. reAlpha Realty, LLC | reAlpha Mortgage | NMLS #1743790 | Equal Housing Opportunity