Author: admin

The disclosure came during Amazon’s third-quarter earnings call on Thursday, when CEO Andy Jassy shared new metrics demonstrating the tool’s growing influence on customer behavior. According to Jassy, 250 million shoppers have used Rufus this year, with monthly active users growing 140% year over year and interactions increasing 210%.

And here’s a killer stat from Amazon: Customers who engage with Rufus during their shopping journey are 60% more likely to complete a purchase compared to those who don’t use the assistant.​

“Rufus is expected to generate over $10 billion in annual incremental sales for us,” Jassy said on the call, highlighting what has become one of Amazon’s most visible bets on consumer-facing AI.​

Amazon reported third-quarter revenue rose 13% to $180.2 billion, exceeding analyst expectations of $177.8 billion. The company’s cloud-computing division, Amazon Web Services, posted 20% revenue growth to reach $33 billion—its fastest expansion since 2022, Jassy said.​

Rufus, which launched in beta in February 2024, is a shopping assistant that’s embedded directly into Amazon’s mobile app and website. Amazon trained Rufus on its entire product catalog, as well as customer reviews, community Q&As, and information from across the web. Shoppers can ask questions from broad product comparisons—like differences between trail and road running shoes—to specific questions about individual items, like whether a certain coat is suitable for winter.​

Rufus represents Amazon’s strategy to keep customers within its ecosystem rather than losing them to search engines like Google, where they might discover competing retailers, or other AI engines like ChatGPT. By answering product questions and offering recommendations without requiring users to leave Amazon’s platform, the goal of Rufus is to train people that Amazon can help you do research about its available products, in addition to simply advertising and selling them.​

Amazon launched Rufus in the U.S. before rolling out the chatbot across the UK, India, France, Germany, Italy, Spain, and Canada. Amazon continually improved the tool throughout 2025; just last week, it introduced a feature called “Help Me Decide,” which uses algorithms to offer guidance when shoppers feel overwhelmed by choices.​

The $10 billion sales estimate is tied to what Amazon internally calls “downstream impact,” a metric the company uses to measure how specific features or services drive additional consumer spending across its marketplace. For Rufus, this means tracking purchases that result from interactions with the chatbot, even if those transactions don’t happen immediately. The company employs a seven-day rolling attribution model to capture delayed conversions.​

Business Insider reported in April that internal planning documents projected Rufus would indirectly contribute over $700 million in operating profits for the year, with expectations to reach $1.2 billion in profit contributions by 2027. Those projections included revenue from advertisements embedded within Rufus responses to user queries.​

Jassy’s remarks during the earnings call emphasized how AI is reshaping Amazon’s retail operations. He noted the company has also launched generative AI features that convert product summaries and reviews into audio clips, and has expanded from covering hundreds of products at launch to millions currently. Another tool, Amazon Lens, allows customers to use their smartphone cameras to search for products visually, with tens of millions of customers using it each month.​

Amazon’s advertising business also posted strong results, with revenue climbing 22% to $17.6 billion in the third quarter. Jassy attributed part of that growth to the company’s demand-side platform, which has been enhanced with new features over the past 20 months and now integrates ad inventory from Netflix, Spotify, and SiriusXM.​

The Rufus announcement comes amid broader questions about Amazon’s investments in AI infrastructure. The company raised its 2025 capital expenditure forecast from $118 billion to $125 billion, with CFO Brian Olsavsky indicating that spending will likely increase again in 2026. Much of that investment is directed toward building data centers and acquiring the computing power needed to support AI applications across Amazon’s cloud and retail operations.​

On Wednesday, Amazon officially opened Project Rainier, an $11 billion AI data center designed to train and run models from Anthropic, the startup behind the Claude chatbot. Amazon has invested $8 billion in Anthropic and announced that the company plans to use 1 million custom Amazon Trainium2 chips by the end of 2025.​

Just days before the earnings report, Amazon confirmed it would eliminate approximately 14,000 corporate positions,. During the call, Jassy addressed the cuts, describing them as driven by a desire to operate with “fewer layers and more ownership” rather than by financial pressures or AI automation. However, a memo sent to affected employees cited AI as “the most transformative technology we’ve seen since the Internet,” stating it enables companies to innovate faster than before. Despite the workforce reductions, Amazon shares surged more than 13% in after-hours trading following the earnings announcement, reflecting investor optimism about the company’s cloud acceleration and AI momentum.

Bank of New York Mellon (BK) has shown steady performance over the past year, and its latest results offer investors a closer look at its current position in the financial sector. Shares have climbed nearly 39% year to date.

See our latest analysis for Bank of New York Mellon.

Bank of New York Mellon’s momentum has been impressive, with a year-to-date share price return of 39.43% and a total shareholder return of 46.49% over the past year. This strong performance has been fueled by renewed investor interest in financials and a robust earnings trend. This suggests that market confidence in the bank’s long-term prospects is gathering pace.

If this kind of sustained growth has you rethinking what’s possible in today’s market, it could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

The question now is whether Bank of New York Mellon’s impressive rally still leaves room for future gains, or if the current price already reflects all of its potential. This has investors wondering if a true opportunity remains.

With the narrative fair value estimate at $118.07, Bank of New York Mellon’s last close of $107.93 suggests there could still be room for upside, drawing keen attention to the metrics behind this call.

Accelerated investment in digital platforms (including digital asset custody, AI integration, and the NEXEN ecosystem), coupled with strong early adoption, positions BNY Mellon for improved operating leverage and net margin expansion over the coming years. Scalable technology helps reduce costs and increases cross-selling opportunities.

Read the complete narrative.

Curious what bold forecasts are fueling this target? The narrative relies heavily on key operational breakthroughs, higher profit margins, and a valuation multiple below the industry. Which numbers matter most for future upside? Dive in to discover the assumptions that could reshape expectations.

Result: Fair Value of $118.07 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent outflows in investment management or an extended period of market volatility could undermine the positive growth narrative presented by Bank of New York Mellon.

Find out about the key risks to this Bank of New York Mellon narrative.

While multiples-based analysis suggests that Bank of New York Mellon looks undervalued compared to industry averages and its own fair ratio, the SWS DCF model offers a more cautious take. According to our DCF estimates, the current share price is actually trading above fair value, which hints at less upside than some might expect. Could patient investors see a better entry point ahead?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Bank of New York Mellon for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 840 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the story differently, or want to dig deeper into the numbers yourself, you can put together your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Bank of New York Mellon.

The smartest investors always stay one step ahead, and Simply Wall Street’s screeners put tomorrow’s biggest opportunities within reach. Don’t let the next wave of winners pass you by.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

(Bloomberg) — October was an unusually good month for the UK bond market.

Most Read from Bloomberg

Gilts posted their best performance in almost two years, and investors including Aberdeen Group Plc, Fidelity International and JPMorgan Asset Management are betting on more gains. Goldman Sachs Group Inc. analysts have slashed their yield forecasts, citing easing inflation pressures and signs Chancellor Rachel Reeves will announce tough steps needed to get the budget in order.

Expectations for more Bank of England interest-rate cuts are powering the move. If a small — but growing — band of strategists are correct that officials will deliver a surprise cut at a meeting this week, the remarkable rebound that’s put UK bonds at the front of a global rally will likely pick up pace.

“It’s always been a question of when inflation is going to start coming down and there are now signs that’s starting to happen,” said Seamus Mac Gorain, global head of rates at JPMorgan Asset Management, who said he is overweight gilts. “It’s pretty likely that the package that the chancellor announces is helpful to the gilt market.”

Ever since Liz Truss’s unfunded budget plans unleashed an historic selloff that led to her ouster three years ago, the nation’s turbulent debt markets have loomed large. They’ll remain a political football ahead of Reeves’ budget on Nov. 26, when she’s expected to announce tax rises in order to keep on the right side of her fiscal rules.

UK yields are still the highest among Group-of-Seven nations, but the gap is narrowing thanks to a surge in market bets on interest-rate cuts.

While the BOE cites stubborn price pressures as the reason it hasn’t cut as much as the European Central Bank, the latest data challenge that narrative.

CPI Surprise

UK inflation unexpectedly held steady rather than quickening in September and separate figures last week showed food prices fell the most since late 2020. Meanwhile, Governor Andrew Bailey — a key swing voter on the nine-member Monetary Policy Committee — has raised concerns about the UK economy running “under potential” and a softening jobs market.

Money markets are now pricing 60 basis points of rate reductions over the next year, compared with around 40 basis points at the start of October.

Story Continues

Some banks, including Barclays Plc and Goldman Sachs, predict the BOE will cut at its Thursday decision. Interest-rate swaps suggest investors think the next reduction is more likely in December or February.

“Gilts are part of our developed market exposure because it’s one of the markets that has been particularly beaten up,” said Huw Davies, an investment manager at Jupiter Asset Management. “At some stage, the weakness in the UK economy will allow the BOE to be at least more dynamic about interest-rate cuts.”

BOE Set to Hold Rates as UK Budget Looms Over Decision: Eco Week

November’s budget is also helping gilts by fueling expectations that potential tax rises and spending cuts will hurt economic growth.

It’s the “single biggest event for UK fixed income,” of the year, said Steve Williams, head of EMEA global fixed income at Amova Asset Management.

A key Labour election pledge to not increase the nation’s big three taxes appears increasingly in doubt.

While this is likely to be unpopular with voters — and is hurting the pound — bondholders are reassured because it shows the government’s commitment to matching day-to-day spending with tax revenue — one of its core fiscal rules.

“The UK does not have the ability to do massive fiscal stimulus,” said Mike Riddell, a fund manager at Fidelity who said gilts are his preferred choice among developed-market issuers. “The UK relative to other countries feels almost like austerity.”

Read: Reeves, Spurned by Voters, Hopes to Win Over UK Bond Markets

To be sure, the speed of the recent drop in yields could be a reason for caution. The rate on 10-year gilts trades at 4.41%, down from a high of 4.85% in early September.

Volatility Ahead

Fidelity’s Riddell said that while he’s still overweight gilts, he had taken some chips off the table after the recent rally. Harvey Bradley, Co-Head of Global Rates at Insight Investment, said he is neutral because of concerns the market is over-positioned for further gains.

Others are outright bearish, citing the likelihood of another budget-driven selloff.

“I still think that we can have more volatility and that gilt yields can spike higher, especially in the run up to the budget,” said David Zahn, head of European fixed income at Franklin Templeton. He doesn’t own gilts in any of his European accounts, and is sticking to his prediction for the UK 30-year yield to rise to 6% from around 5.2% currently.

Even after recent gains, the Bloomberg gilt index is over 25% from its high watermark, with the market’s longer-than-average duration hurting performance. Yet it’s precisely because gilts have taken such a battering that they appear attractive to bargain hunters willing to ride out bouts of volatility.

“We’ve been hurt a few times by rogue headlines,” said Matthew Amis, fund manager at Aberdeen, citing the sudden July selloff on speculation the chancellor might leave her position. “But I think Reeves can deliver a good budget.”

–With assistance from Alice Atkins, Naomi Tajitsu, James Hirai, Kit Rees and Alice Gledhill.

(Updates with Eco Week tout above second chart.)

Most Read from Bloomberg Businessweek

©2025 Bloomberg L.P.