RBC Capital Markets initiated coverage on Reformation (NYSE: REF) with an Outperform rating. Analyst Irene Nattel set a price target of $18 for the apparel retailer's shares.

Coverage Details

The initiation marks the first time RBC Capital has covered the company. The firm assigned the stock an Outperform rating, indicating a positive outlook relative to peers.

Amazon (NASDAQ: AMZN) is eyeing double-digit gains at the open on July 31, 2026, following the release of its second-quarter earnings report. The e-commerce and cloud computing giant announced quarterly revenue of $200.6 billion, marking a significant performance milestone for the Global X NYSE 100 ETF component. The strong financial results have positioned the stock for substantial pre-market momentum, reflecting investor confidence in the company's continued growth trajectory amid broader market activity on the New York Stock Exchange.

The primary driver behind the positive market reaction is the robust performance of Amazon Web Services (AWS). The cloud computing division reported sales that expanded by 37% year-over-year, underscoring its critical role in the company's overall profitability and operational scale. This growth rate highlights the sustained demand for cloud infrastructure services, which remains a key pillar of Amazon's long-term strategy despite broader economic uncertainties.

Capital Expenditure Outlook

Looking ahead, management provided clarity on future investment plans during the earnings update. CEO Andy Jassy stated that the company expects capital expenditure (CapEx) spending to reach $220 billion this year. Jassy attributed this significant increase in outlay to higher memory costs, indicating that Amazon is aggressively investing in hardware and infrastructure to support its expanding AI and cloud operations. This forward-looking guidance offers investors insight into the company's commitment to maintaining its technological edge.

Market Context

The bullish sentiment surrounding Amazon coincides with other notable market events on July 31. Reformation (NYSE: REF), a sustainable womenswear brand, celebrated its IPO on the NYSE, closing fractionally higher on Thursday following its debut. CEO Hali Borenstein was scheduled to join NYSE Live to discuss the strategy behind going public and outline the firm's plans for 2026. Additionally, IronHorse Capital marked the launch of the Conductor Global Value ETF during the closing bell session.

What the Numbers Show

The divergence between Amazon's revenue scale and its aggressive CapEx guidance suggests a strategic pivot toward heavy infrastructure investment. While AWS sales grew by 37%, the expectation of $220 billion in annual CapEx indicates that near-term margins may face pressure from rising memory costs. Investors are weighing the immediate revenue strength against the substantial capital required to sustain future growth in the cloud and AI sectors.