Amazon Reassigns Engineers to Kiro, Discontinues Support for Competing AI Coding Tools
Amazon's Shift to In-House AI Tools: Amazon has instructed its engineers to stop using third-party AI coding tools and instead utilize its own tool, Kiro, which allows for code generation through plain language descriptions. This decision aims to enhance Kiro's development and make it the default choice for engineers.
Impact on External AI Partnerships: Despite having significant investments in AI firms like Anthropic and a partnership with OpenAI, Amazon is moving away from these external tools, indicating a strategic shift to prioritize its own AI services and reduce reliance on outside platforms.
Market Response and Stock Performance: Following the announcement, Amazon's stock rose by 2.53%, closing at $226.28, with analysts maintaining a Strong Buy consensus rating and an average price target suggesting a potential upside.
Concerns for Developers: The transition to Kiro may impact developers accustomed to using more advanced external tools, as Amazon aims to streamline its operations and potentially lower long-term costs through internal growth.
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Microsoft's Earnings Report Triggers Stock Plunge
- AI Investment Returns: Microsoft has invested a total of $11 billion in OpenAI since 2019, now holding a 27% stake valued at $135 billion; however, despite strong performance in the AI sector, its stock has plummeted following the earnings report.
- Earnings Highlights: In its fiscal second quarter, Microsoft reported a 17% year-over-year revenue increase to $81.3 billion and a 21% rise in operating income to $38.3 billion, achieving an operating margin of 47%, driven by a 39% revenue growth in Azure.
- Market Reaction: Despite beating analyst expectations, investors reacted negatively to the cautious third-quarter revenue guidance of $80.65 billion to $81.75 billion, reflecting only a 15%-17% growth, which led to a significant stock sell-off.
- Future Outlook: Microsoft's remaining performance obligations (RPO) rose to $625 billion, indicating strong future demand; although facing challenges from slowing consumer business growth and declining capital expenditures, it still anticipates mid-to-high teens revenue growth in the coming quarters.

Microsoft Shares Plunge 10.23% After Earnings Report
- Stock Decline: Microsoft (MSFT) closed at $433.50, down 9.99% on Thursday, primarily due to investor concerns over slowing cloud growth, leading to a significant drop in share price.
- Surge in Trading Volume: Trading volume reached 126.5 million shares, approximately 366% above the three-month average, indicating a strong market reaction to Microsoft's earnings report, despite the company exceeding Wall Street's expectations for sales and EPS in Q2.
- Capital Expenditure Spike: Microsoft's capital expenditures surged 89% year-over-year, raising concerns about ROI as its Intelligent Cloud unit saw a 29% growth in Q2, with the market focusing on the short-lived nature of many investments.
- Valuation Analysis: With a forward P/E ratio of 26, the significant stock sell-off appears extreme given the company's ongoing sales and EPS growth, as management noted that much of the capex was directed towards short-lived assets, prompting investors to seek higher returns.






