Key Takeaways
- The UK's antitrust regulator has flagged the dominance of Amazon (AMZN) and Microsoft (MSFT) in the cloud computing market, citing potential harm to competition due to their combined 60-80% market share and barriers to switching providers.
- Vale (VALE) reported strong Q2 2025 earnings, with net profit of $2.12 billion significantly exceeding estimates of $1.44 billion, and adjusted EBITDA of $3.39 billion also surpassing expectations.
- Anheuser-Busch InBev (BUD) shares tumbled over 11% after reporting weaker-than-expected sales volumes in key markets like Brazil and China, contributing to a 1.9% overall volume decline in Q2 2025.
- Wells Fargo (WFC) plans to name CEO Charlie Scharf as Chairman of the Board, alongside a special equity grant of $30 million in restricted share rights and 1.046 million stock options.
- New Zealand's ANZ Consumer Confidence Index for July declined by 4.1% month-over-month to 94.7, following a 6.4% increase in the prior month.
The UK's Competition and Markets Authority (CMA) has raised concerns about the significant market power held by Amazon Web Services (AWS) and Microsoft Azure in the cloud computing sector. After a 21-month investigation, the CMA concluded that their combined market share of 60% to 80% in the UK is hindering competition, with technical and commercial barriers making it difficult for customers to switch providers. Microsoft's licensing practices were specifically highlighted as potentially increasing costs for rivals like AWS and Google Cloud (GOOGL). The CMA has recommended that the UK government consider designating Microsoft and AWS with "strategic market status" (SMS), which would allow for targeted interventions to promote competition. Both companies have pushed back against the findings, with Amazon stating the report "disregards clear evidence of robust competition" and Microsoft arguing the cloud market is dynamic and competitive.
Mining giant Vale (VALE) delivered a robust performance in the second quarter of 2025, reporting a net profit of $2.12 billion, significantly surpassing analyst estimates of $1.44 billion. The company's adjusted EBITDA also exceeded expectations, reaching $3.39 billion against an estimated $3.23 billion, with revenue of $8.8 billion aligning with forecasts. This strong financial showing comes as the company remains committed to its 2025 C1 cash cost guidance, which could positively impact margins.
Meanwhile, Anheuser-Busch InBev (BUD) experienced a sharp decline in its share price, tumbling over 11% after reporting disappointing second-quarter sales volumes. The world's largest brewer saw overall volumes fall by 1.9%, primarily due to weaker demand in key markets such as Brazil and China. In Brazil, revenue dipped 1.9% and volumes dropped 6.5%, attributed to adverse weather and underperforming a soft industry. China also saw a significant volume decline of 7.4% in the second quarter.
In corporate governance news, Wells Fargo (WFC) announced its intention to appoint CEO Charlie Scharf as the additional role of Chairman of the Board. The board also awarded Scharf a substantial one-time special equity grant valued at $30 million in restricted share rights and 1.046 million stock options, recognizing his leadership in transforming the bank. A lead independent director will be appointed to maintain independent oversight.
In other market developments, New Zealand's ANZ Consumer Confidence Index for July registered a decline of 4.1% month-over-month, settling at 94.7. This follows a notable 6.4% increase in the previous month. This indicates a softening in consumer sentiment for the period.
Ray Dalio, the founder of Bridgewater Associates, has sold his remaining stake in the hedge fund and stepped down from its board, marking the end of his formal leadership role at the firm he founded decades ago. This move follows a multi-year succession process.
Apple (AAPL) reported strong Q2 2025 earnings, with revenue of $94.04 billion and EPS of $1.57, both exceeding analyst estimates. The company's CFO, Kevan Parekh, stated that the gross margin guidance of 46%-47% includes $1.1 billion in tariff-related costs. He also anticipates mid-to-high single-digit revenue growth for the September quarter.
Amazon's (AMZN) CEO indicated that if costs continue to rise, it remains unclear who will ultimately absorb them, hinting at potential price increases. This comes as the company has been focused on cost-cutting strategies to boost profit margins.
Finally, Reddit's (RDDT) CEO announced that the company is "de-prioritizing some initiatives," including work on the user economy, to focus on core growth and monetization. This strategic shift follows a strong Q2, where Reddit reported $500 million in revenue with 78% growth. Target (TGT) is also reportedly making progress in addressing its persistent issue of out-of-stock merchandise.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.