- Investors are expressing concerns about Amazon's lack of transparency regarding its investments in satellite internet and grocery initiatives.
- Amazon's shares have underperformed compared to other big tech companies and the overall market for the past five years.
- Investors are calling for Amazon to disclose more basic information, such as the number of corporate employees in specific divisions and the size of its Prime subscription business in different regions.
- The lack of transparency is seen as a hindrance to investors' ability to assess the success and profitability of Amazon's ventures.
- The article suggests that increased transparency could help improve investor confidence and potentially boost Amazon's stock performance.
The main topic is Pinterest's update on its Amazon partnership and AI efforts during its Q2 2023 earnings. The key points are:
1. Pinterest's partnership with Amazon is progressing faster than expected, with live traffic tests showing positive results.
2. Meaningful revenue impacts from the Amazon deal are expected in early 2024.
3. Pinterest's AI investments are improving engagement, relevance, and ads on the site.
4. The company is using next-generation AI technologies to surface more relevant and personalized content and improve ad relevance.
5. AI has contributed to a 8% global monthly active user growth and increased user engagement.
6. Pinterest's earnings beat expectations, but the stock dropped due to Q3 guidance missing the mark.
Amazon and Alphabet have the potential to achieve $3 trillion valuations by 2030 due to their strong presence in e-commerce, digital advertising, and cloud computing, as well as their potential growth in AI software and other areas.
Analysts suggest that Wall Street is underestimating Amazon's stock due to the company's improved e-commerce fulfillment capabilities and potential for margin growth, as well as its resilient Amazon Web Services cloud business.
Amazon's advertising business, which already generates billions in revenue, is projected to become as important as its cloud business and could reach $100 billion in size, as the company uses its vast data and integrated businesses to target customers and drive conversions.
Amazon is investing heavily in streaming content, despite criticism, and may have the best business model; statisticians in Britain have discovered 2% of GDP in their data; the pocket calculator played a significant role in ushering in the digital age.
Amazon stock is favored by billionaire investors such as David Tepper, Ken Griffin, and Warren Buffett due to its potential to become a leader in the emerging AI industry, with Amazon's cloud computing platform, AWS, being a major player in the development and deployment of AI models.
Summary: Many investors are predicting a new bull market for the S&P 500, and while it has yet to reach a new high, it is only 7% away; three stocks to consider buying are Amazon, which has a strong presence in the logistics market and opportunities in AI, Mastercard, which benefits from its business moat and growth in emerging markets, and Vertex Pharmaceuticals, which has potential catalysts in its pipeline and an attractive valuation.
Amazon is offering massive discounts on a wide range of items, including home decor, kitchen appliances, cleaning gadgets, and fashion pieces, with deals up to 74 percent off in its Outlet store.
Amazon stock gained 3.5% and is approaching a buy point, with a 69% increase this year to outpace the Nasdaq and S&P 500, making it one of the top stocks in the Magnificent 7.
Amazon is investing over $440 million to increase wages for its contracted delivery employees, expecting them to earn an average of $20.50 per hour or more.
Amazon's efforts to improve profitability have been praised, with its stock potentially seeing further upside if its North American retail business continues to become more profitable, according to a research note from Morgan Stanley.
Despite still being in a bear market, Amazon's stock is thriving in 2023 due to its acquisitions, strength in core activities, and attractive price, making it an opportune time to invest.
Despite seeing decent share price growth in the past few months, Amazon.com is currently trading at a fair value, with its future earnings expected to double, indicating a positive outlook for the company.
Amazon ranks as the top global brand in 2023 with a value of $299 billion, followed closely by Apple at $298 billion, according to the annual ranking from Brand Finance, with the tech sector dominating the list.
Amazon.com's estimated fair value is $160 based on the 2 Stage Free Cash Flow to Equity model, indicating that the current share price of $135 is close to fair value.
Amazon is preparing for its fall sales event, known as Prime Big Deal Days, featuring discounts on a range of products including small appliances, clothing, smart devices, and TVs, with rival retailers expected to offer competitive sales as well.
