Amazon's Robotics Opportunity Is Bigger Than You Might Realize, Think AWS

Summary

• While the current robotics narrative is centered around cost savings (estimated $10 billion lift to operating income by 2030), it also cultivates beautiful synergies with AWS, creating top-line growth opportunities.
• Amazon has a historical strategy of first developing a service for internal use, and then eventually scaling out to serve external third-parties.
• Think of AWS cloud services which initially began as a platform to run its own e-commerce website, and ‘Buy with Prime’ which extends the use of its fulfillment logistics.
• Now, Amazon is leveraging its knowledge and experience in robotics development and deployment to help other robotic companies innovate their own autonomous machines through AWS.
• AWS is primarily positioned to serve the industrial robotics sector more broadly, a market which is expected to be worth as much as $60.5 billion by 2032.

onurdongel

Amazon.com, Inc. (NASDAQ:AMZN) stock has been selling off hard lately, down 20% from its all-time high into bear market territory. Despite near-term recession risks, the market may be ignoring the longer-term growth opportunities for Amazon through its robotics endeavors. While the current

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.