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Big Tech's paper gains on private AI holdings are distorting the S&P 500 earnings picture, and Amazon (AMZN) is the latest name to add to the effect.
The company posted abnormally large earnings growth in its most recent quarter, with unrealized gains on its Anthropic investment powering the print.
Amazon follows other technology companies that have already reported the same dynamic, leaving aggregate S&P 500 profit growth figures increasingly detached from what underlying operations actually produced.
Anthropic marks and the earnings print The source of Amazon's inflated growth is the accounting treatment of paper gains on its Anthropic stake. These gains are unrealized, meaning no cash has changed hands.
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