Amazon (AMZN) touts optimism for the future despite a difficult year for big tech.
In a letter to shareholders in 2022, CEO Andy Jassy said e-commerce could grow some of its underperforming businesses by focusing on cutting costs.
Almost all analysts are bullish on Amazon’s outlook, but one is clearly bearish.
BNP Paribas Managing Director Stephane Slowinski said stock ratings rarely underperformed.
Yahoo Finance’s Dave Briggs asked one bear why he would be part of the Wall Street bull herd.
Slowinski says Amazon will be successful with AI, but ultimately it is “not yet clear” how the company will use generative AI in its consumer services.
Read the full interview here.
Key takeaways from the video:
0:00:16 – Amazon wins with AI
0:01:08 – Wall Street focuses on 3 things at Amazon
video transcript
Dave Briggs: Jassy also talked about generative AI projects. What made you change your rating and join Amazon’s bull herd?
Stephen Throwinski: yeah, look. I think Amazon will succeed with AI. If anything, they are one of the creators of that industry he has been using AI for over 20 years since it was invented. Clearly, Amazon Web Services has functionality. Like Google, it has its own large language model. They have their own semiconductors. It doesn’t necessarily rely on external technology. And I think we’ll leverage that through AWS to make it available to our enterprise customers.
I think I saw that they announced it yesterday. It’s not yet clear how Amazon will use generative AI in its own Amazon consumer service. So I think it’s still to come. So this is an exciting space.
Microsoft thinks so through its relationship with OpenAI. Google, like Amazon, has its own capabilities. And Amazon will all succeed. But in the short term, I think the market is he’s focused on three things. One, how much does it cost? So while we may not see revenue yet, will CapEx increase as the shift to generative AI accelerates? I am looking for
Second, what is the product opportunity? At Microsoft, people are looking at Microsoft 365, GitHub Copilot, and other announcements they’ve made about real opportunities in the near future to start monetizing. think. We’ve seen other partners like Salesforce with GPT and Intuit with Mailchimp now try to monetize this through their products as well.
And of course the third is the platform opportunity. As I mentioned earlier with AWS, Google Cloud Platform, and Microsoft Azure, we are making this technology available to enterprise customers to bring their data into the platform and start training with these large-scale language models. A unique AI initiative. So I think all three companies will eventually benefit from it.
