AMZN focuses on being the best casino

$Amazon.com(AMZN)$ AMZN already has the most customers and it's a no-brainer for them to invest in future initiatives like AI. $Microsoft(MSFT)$ wants to focus on being the best gambler while AMZN focuses on being the best casino where the best gamblers come to play.

AMZN is making a huge investment in the infrastructure that AI will require to support the workload. They will also focus on the next layer which is the development environment for application development. Lastly, with Amazon Q will help provide tools for application development.

AWS also has a strategy to be interoperable with other platforms as they can't be everything for everyone. By having this in the AWS environment they can offer cybersecurity and other types of essential services that protect all their IT assets.

The short-term bad news is that Amazon may spend more than they every have in CAPEX - 85 BN which will show up in reduced profits and in the stock price but long-term investors like me are patient.

AMZN stock price may be flat for the investment phase but eventually, you will see amazing growth and profits in AWS. This is going to $250 by year end.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment1

  • Top
  • Latest