Transcript for:
Amazon Shares and Future Growth: Key Drivers and Challenges

we are keeping a close eye on Amazon shares fairly muted uh this morning down about 1% after hitting its highest point ever the stock closing at $200 on Tuesday's close this is a good sign for the CEO is's going to have he will have been in the job for three years as of Friday Yahoo finance Tech editor Dan Hy is here to weigh in Dan thanks so much for being here look obviously it's been a record-breaking year for Amazon hitting that record-breaking market cap what could potentially drive this stock to even further highs and how much more pressure is on the name given this record yeah MD I think a lot of this has to do with Andy jasse and his kind of uh cost uh controls that he put into place obviously there were a lot of layoffs uh part of the the reason why they had that pullback uh last year um was because and the year before it was because of the overexpansion that they did during covid so they basically figured look everybody was inside now because of this pandemic everyone's going to stay inside forever it turns out that that is not true people like going out and shopping and doing other things um and so they needed to pull back um they've since done that they've also seen uh more growth in AWS something that uh W Street was nervous had kind of hit its peak and was now just going to kind of slowly grow over time but AI has helped to drive a new expansion there and the Investments that they're making in AI is helping with that as well uh so that's really I think where a lot of people are going to be looking for Amazon to kind of Drive its next level of growth that kind of ability for them to tap into their AI capabilities uh they do have tough competition Microsoft obviously is basically you know best friends with open AI um and Google has its own AI capabilities that it's pushing in their cloud services as well so you know it's not as though this is going to be easy for them um you know when you think about AI right now frankly a lot of it is you know Microsoft and Google uh Amazon however is there and they are pushing it um and so that's something that could be really uh uh their next growth driver on the the the storefront the the retail side of things they're trying to take on uh teu go along uh with the you know low cost direct shipping kind of goods uh that could help them on the retail side of things uh and then they have a prime day coming up uh I believe it's on the 16th and 17th uh and so that should give an indicator of how much people are actually shopping on the retail side but really I think it's all going to be about as everything in Tech is right now ai all right Dan thanks so much as always for joining us on all things Tech and of course the AI impact in the room appreciate it