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AWS And AI Uncertainty Weighs On Amazon Stock

Jun. 01, 2023 3:19 AM ETAmazon.com, Inc. (AMZN)5 Comments
Bay Area Ideas profile picture
Bay Area Ideas


  • Amazon's annual letter highlights efforts to improve efficiency, fulfillment costs, and delivery speed, as well as addressing AWS challenges and investing in AI technology.
  • Q1 earnings show resilience and stability amid economic uncertainty, but AWS growth has slowed, raising concerns for the company's growth driver.
  • AI adoption uncertainty and AWS growth concerns justify a lower valuation, leading to a Hold rating with a price target of $125.

Amazon Germany Services GmbH



For a long time, AWS has been the growth engine for Amazon.com, Inc. (NASDAQ:AMZN). During the pandemic, its e-commerce business showed strong results as the consumer landscape changed rapidly. As a result, AMZN stock hit all-time highs. But now we

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Bay Area Ideas profile picture
A Canadian-based investor with a focus on US Tech and Financials. Graduated with a Bachelor of Commerce Degree with Distinction, majoring in Finance. Lifetime Member of the Beta Gamma Sigma International Business Honour Society.

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Comments (5)

EliasMouawad profile picture
Nice article. Apple will also fail in adopting AI. Tech giants are getting too big with little growth left.
When talking about AI you only reference their customer side CHAT-GPT efforts. You do understand that Amazon is the only real secure multi-tenant cloud provider that is being used by the government - who is the fortune #1 entity in the world. If you are building AI solutions, they need to be physically hosted NOT in a public cloud. Nobody is offering the complete suite yet where you can actually combine multiple solutions (cold storage, on-prem, security, access, licensing, and automate service levels, costs, etc...)
@Lesson I really appreciate the technical details. Most analysts have no clue what is used for. They think it's a storage play. The industry seems to believe that the business is commoditized. AWS is the biggest winner with any innovation such as AI.
I'm not worried...AMZN pessimists have been bashing the stock since it was at 90, saying it was going to tank...love that I've stuck with it and gained more than 20%!
SpoiledRottenBrat profile picture
AMZN stock price was up 20% in month of May. Not too shabby!

Over 17 straight quarters of growing YoY revenues.

I bought 1000 shares at $88 a share just three months ago. Shares are up 49.5% since the purchase (according to AT online account).

SP is rising like a phoenix
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