Yesterday, Amazon (AMZN.US) shares gained nearly 5% as the company unveiled a GPT-competing AI technology called ‘Bedrock’. If today’s bank results support sentiment on Wall Street, the company could extend its rise. In a letter to shareholders, CEO Andy Jassy stressed that he will be able to reduce the company’s costs and believes in its long-term potential.
Among other things, Amazon has abandoned its free returns policy through which it incurred additional costs. This year, the company is going to make another tough decision to lay off 27,000 employees – it laid off 9,000 in March. CEO Jassy also stressed that the company is reviewing each of its businesses separately to make sure its margins are right to facilitate long-term growth. Last year, it cut Amazon Care, Amazon Fabric’s medical services and closed several stationary locations, among other things. Shareholders liked Jassy’s vision according to which the best times are yet to come for the company.
The company’s CEO highlighted a significant amount of spending on artificial intelligence, an investment hit in recent months. The company is working on its so-called LLM language models similar to OpenAI’s ChatGPT and Google’s laMDA. Its product Bedrock, operating in ‘generative AI,’ is a new service in the Amazon Web Services cloud (the world’s largest cloud computing platform). It will be used to generate text and images using models from Amazon and several AI startups.
Amazon (AMZN.US) shares, H1 interval. The price has bounced off an upward trendline, which has overlapped with the 200-session average (SMA200, red line). If the momentum on the indexes is maintained, the bulls may want to test the annual maxima at $112 per share. Source: xStation5