Amazon Wraps Controversial Week Ahead of ‘Melania’ Premiere, Earnings

In a Reddit forum for Amazon ‌employees, some users questioned the rationale of the‍ company’s ⁤money-saving efforts alongside ‍its⁤ investment in “Melania.”

“with ‍$75 million we could have given​ each laid off employee about $4,500,” wrote‍ one user. “But instead we spent it on the ridiculous Melania movie.Ashamed to work at ⁢Amazon.”​

Analysts at Citizens said this week that they expect Amazon’s 30,000 job cuts to generate⁤ up ‌to $8 billion of cost savings in 2026. ⁣

In a segment for “The Daily ⁣Show” that aired‌ Thursday, ‌host Desi Lydic called it a “cash grab,” and criticized Jeff Bezos, Amazon’s founder and former CEO.

“Why ‌would ‍Jeff ​Bezos, a billionaire⁤ who‌ has tons⁤ of​ business with‌ the government, run by a famously corrupt president known for loving bribes, overpay⁢ for a⁤ Melania documentary?,” Lydic said.⁢ “Hmm, let me think.”

And filmmaker‌ Julie ⁣Cohen, who previously worked with Amazon on documentaries, told‍ the New York Times that the ‍Melania ⁤price tag ​was abnormal and suggests the company “is ⁤buying something else ⁣for their money.”

After he was repeatedly attacked by Trump in his first term, Bezos has ‌cozied up to the president this time around. He’s dined with Trump at his⁤ Mar-a-Lago residence, and he attended the ⁣inauguration a⁢ year ago. ​Amazon, meanwhile, donated $1 million to Trump’s inauguration fund and⁢ helped pay ⁢ for Trump’s $300 million ballroom renovation.

There was even more drama ​in the broader Bezos universe this week after multiple‌ outlets reported that the Washington Post, which Bezos has owned‌ since 2013, is preparing⁣ broad‍ layoffs across the newsroom, with the sports, local and international sections expected‌ to⁢ be impacted.

the newspaper’s White House team wrote a letter to Bezos, describing the importance of the‍ work of‍ those teams and telling​ their boss that​ they‍ need “collaboration⁤ with all‌ corners of the newsroom.”

On‌ Thursday, the‍ company is scheduled to report fourth-quarter results, wrapping up earnings ⁤season ⁣for the tech ​giants (though Nvidia ‍reports​ later in⁣ the month).

Amazon is expected to report revenue growth of about 13%‍ to $211.3 billion, ‍according to analysts surveyed⁤ by LSEG. The expansion is being driven by​ Amazon Web ‍Services and‍ digital advertising, which are both projected to show growth of around 22%, based on data ‌from FactSet.

Analysts at KeyBanc capital ‌Markets ⁣upped ‌their price target on the stock this ​week and kept⁣ their buy suggestion, in part due to an acceleration at AWS, boosted by a recent deal ⁢ with OpenAI. Amazon is now in ⁣talks to invest up to $50‍ billion⁣ in OpenAI,⁤ CNBC‍ confirmed this week.

As Amazon races to keep pace with​ rivals in AI,the company is boosting spending on data⁣ centers. In the‌ earnings report,⁢ capital expenditures⁤ are likely to show an ⁣increase of 24% from a ⁢year earlier to almost $34.5 ⁣billion, according ⁤to LSEG.

The⁣ KeyBanc analysts said that while those rising costs will ⁢weigh on profitability, “we believe Amazon will continue looking across the association for⁢ further efficiencies to minimize the potential margin impact.”

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