Dear Amazon Stock Fans, Mark Your Calendars for October 6

The Federal Reserve raised the benchmark interest rate to 3.75%-4.00%, with most officials projecting one more hike this year. U.S. stock futures rallied as bond yields fell. Key economic data, including jobless claims and manufacturing indices, are expected later. Pre-market, Arm Holdings (ARM) and other tech stocks advanced, while Fluence Energy (FLNC) dropped after cutting revenue guidance.

Amazon's AWS segment reported $42.23B in revenue, up 37% YoY, its fastest growth in 18 quarters, with a 39.4% operating margin. The company's AI and chip businesses each surpassed $25B in run rate, growing at triple-digit percentages. Amazon's stock rose 9% since Q2 earnings, outperforming SPY and QQQ. The company has $496B in contracted backlog and plans $200B in capex for 2026.

Mastercard (MA), Amazon (AMZN), and Costco (COST) have shown significant long-term growth. Mastercard reported Q2 adjusted EPS of $5.04 and 14.1% revenue growth. Amazon saw Q2 revenue of $200.61B and AWS growth of 37%. Costco achieved Q3 revenue of $70.53B and a 92% U.S. membership renewal rate. Each company faces specific risks, including regulation, capital intensity, and valuation concerns.

Generac (GNRC) signed an $8B deal with Amazon (AMZN) for backup power generators. Initial deliveries worth $2.4B are due in 2027-2028. Amazon gets a warrant for 1.69M Generac shares. Generac's data center revenue grew to $100M in Q2, with 2026 outlook raised to $450M. The company is expanding production to meet demand.

Amazon.com (AMZN) signed a long-term deal with Generac Holdings for backup generators, with $2.4b in initial deliveries planned. AMZN's stock is down 3.18% in 30 days but up 10.90% year-to-date. Analysts suggest AMZN could be 47% undervalued at $251.19, with a fair value estimate of $475.09, citing high-margin growth in AWS and advertising segments.

Data center developers have issued $39B in junk bonds this year, per Bloomberg. The International Energy Agency expects data centers to drive half of new US electricity demand in the next five years. Oregon raised commercial power rates to protect residential consumers, increasing data center costs. Nvidia's CEO expects chip sales to double, and Amazon signed a $2.4B deal with Generac for backup power. Rapid data center expansion raises concerns about resource competition, environmental impact,