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.”

WATCH: Amazon CEO Andy Jassy ⁤on the ‘unprecedented’ demand for AI compute