Amazon reported earnings yesterday afternoon

Amazon is all about convenience and efficiency; convenience and efficiencies in shopping, computing, health, and home management. It is a convenience and efficiency caterpillar, continuously able to morph into better versions of itself and its latest earnings report shows that Amazon may be able sustain free cash flow and fuel further stock gains even though it trades at lofty multiples.

🧬GenerativeAI & large language model (LLM) excitement and expansion as well as AI’s integration with Amazon Web Services (AWS) are a huge part of the company’s positive story even though generative AI monetization is still in its early stages. Amazon definitely looks able to compete head-to-head with Microsoft in generative AI capabilities.

☁Cloud customers are consistently opting for AWS when initiating new workloads/instances due to its extensive product range:
✔AWS recently introduced several AI-focused product launches spanning multiple layers of the tech stack
✔Optimizations within the public cloud will persist
✔The easing of comparisons should contribute to AWS revenue growth re-acceleration.
Amazon has also been heavily investing in its in-house semiconductor (chip) designs, with a growing emphasis on high-performance machine learning processors that play a crucial role in powering LLMs and can give it an advantage in generative AI to compete with ChatGPT.

🛍Amazon’s retail side continues to benefit from solid margins as well as 1-day & same-day delivery; retail growth should improve off 2Q levels in 2H.

If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.

Jeff Bezos

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