AWS optimism lifts Amazon sentiment ahead of results
Lale Akoner, Global Market Analyst, at eToro says: “Amazon is heading into its fourth-quarter earnings with investor confidence improving, helped by a strong performance last quarter and growing optimism around its cloud business. Momentum in AWS has been a key driver, with cloud growth coming in ahead of expectations and signs that demand remains healthy as capacity continues to expand.
“Looking ahead, 2026 is shaping up to be an important year for AWS, particularly as AI-related workloads scale. Investors are increasingly focused on whether accelerating cloud growth can translate into stronger earnings momentum and support a higher valuation. At current levels, Amazon shares trade at a relatively modest multiple of long-term earnings, which has added to the improving sentiment.
“Beyond cloud, attention will also be on Amazon’s path to higher profitability, including operating margin expansion, discipline around capital spending, and continued growth in the advertising business. Longer-term upside could come from logistics automation, broader monetisation of AI across consumer products, new revenue streams such as satellite internet, and the potential for future Prime price increases.”
BT fibre rollout on track despite revenue dip
Adam Vettese, market analyst for eToro, says: “BT’s Q3 trading update offers reassurance on the fibre led transformation, with Openreach surpassing Fibre To The Premesis (FTTP) targets. This entailed another million premises built and record net adds. EBITDA climbed 4% seeing cost discipline shine through, with reaffirmed full‑year guidance and the free cash flow inflection on track, supporting the dividend and deleveraging story.”
“Yet revenues remain stuck in decline, dragged by weak handset sales, Business weakness and copper line erosion to hungry altnets. Group top line growth is still elusive, leaving the investment case reliant on execution which begs the question can Openreach monetise the fibre footprint fast enough to offset legacy drags? Investors seem to think so this morning with shares up sharply, continuing their strong start to the year. Eyes will be on revenue to turn in order for further sustained growth meaningfully higher.”
Shell shrugs off profit dip as energy leads 2026
Mark Crouch, market analyst for eToro, says: “Shell’s latest quarter wasn’t spotless, with profits down 11%, but the miss says more about tax timing than underlying performance. Strip that out and the oil giant remains firmly on the front foot. Management’s decision to press ahead with a $3.5 billion share buyback speaks louder than the profit dip and highlights the strength of underlying cash flows.
With Energy emerging as the best-performing sector of 2026, capital continues to rotate into the space even as oil and gas prices remain historically on the low side. Shell’s shares are trading close to all-time highs regardless, reflecting balance sheet strength, reliable cash generation and renewed upside potential in the share price. Progress on major projects in Australia and Brazil adds further visibility to medium-term growth.
CEO pay has drawn some scrutiny, but if the shares push into fresh highs, it’s unlikely to remain a sticking point. Rarely viewed as a growth play, Shell now looks to be following US supermajors Exxon and Chevron higher, with BP not far behind. For now, the renewables debate has gone quiet, and the market seems perfectly fine with that.”
Time to keep an eye on margins for Watches of Switzerland
Adam Vettese, market analyst for eToro, says: “Watches of Switzerland’s Q3 update reads positively on the top line, with management raising full-year sales guidance to 9-11% growth from the prior 6-10% range, thanks to stronger than expected demand across the US and UK. The US business continues to power ahead, while the UK shows welcome signs of stabilisation, in what is an uncertain luxury backdrop.
“That said, profitability remains the watch point. Margins are tipped to slip 70-90 basis points on higher costs and tariff pressures, so this is growth at the expense of squeeze on earnings in the short term.
“Shares have bounced strongly since the back end of last year but find themselves in the red this morning as investors digest the upcoming challenges whilst some may also be locking in profits.”
Q4 sales and profit beat for GSK as shares surge to 24 year high
Mark Crouch, market analyst for eToro, says: “GSK enters 2026 with a renewed sense of purpose and, for the first time in years, looks ready to step out from the long shadow of AstraZeneca. Under new CEO Luke Miels, momentum has accelerated as pipeline execution sharpens and operational delivery improves.
“A Q4 sales and profit beat was driven by broad-based double-digit growth across higher-value specialty franchises. Oncology continues to stand out, while Respiratory, Immunology and HIV all delivered excellent gains, reinforcing confidence that GSK’s growth is by no means reliant on a single pillar.
“Management now guides to 3–5% revenue growth in 2026, following a strong 7% advance in 2025. While that implies moderation, it also signals a more disciplined and sustainable trajectory. Shares have broken above levels not seen in over two decades, pointing to a genuine shift in investor sentiment after years of mediocrity.
“Looking ahead, patent expiries loom and sceptics remain, but with this update, expectations will be rising. Long viewed primarily as a dividend play, GSK is increasingly starting to look like something more compelling.”
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