Amazon Shares and Future Growth

Current Stock Status

• Amazon shares are down about 1% this morning.
• Recently hit its highest point ever, closing at $200 on Tuesday.
• CEO Andy Jassy has been in the job for three years as of Friday.

Key Drivers for Future Growth

Cost Controls

• Andy Jassy implemented significant cost controls, including layoffs.
• Layoffs were a response to overexpansion during COVID-19.
• Post-pandemic reality showed people prefer going out, leading to pullback.

AWS Growth

• Growth in Amazon Web Services (AWS) contributing to stock performance.
• Wall Street was initially worried AWS had peaked.
• AI investments are driving new expansion in AWS.

AI Investments

• AI capabilities seen as the next major growth driver for Amazon.
• Faces strong competition from Microsoft (OpenAI) and Google.
• Amazon pushing AI in cloud services.

Retail and Prime Day

• Amazon pushing for low-cost, direct shipping goods to enhance retail side.
• Upcoming Prime Day on the 16th and 17th will indicate retail performance.

Summary

• Amazon's future growth heavily tied to AI investments and AWS expansion.
• Cost control measures have helped stabilize after overexpansion.
• Prime Day will be a key event to watch for retail performance indicators.

Conclusion

• AI is the major focal point for Amazon's next phase of growth.
• CEO Andy Jassy's strategies on cost control and AI investment are pivotal.