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Amazon's Growth Outshines Struggling Peloton as Consumers Shift Preferences

  • Amazon is a strong long-term investment due to its profitable growth opportunities in e-commerce and cloud computing.

  • Amazon Web Services is a fast-growing and highly profitable segment for Amazon.

  • Peloton faces uncertain long-term demand for connected fitness products as sales continue to decline.

  • Planet Fitness has shown more resilience than Peloton, indicating a potential permanent shift in consumer preferences.

  • Peloton's future remains unclear, so it's better to stick with proven long-term winners like Amazon.

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### Summary The author discusses two major trends that are driving Amazon's success: fulfillment & delivery and artificial intelligence. ### Facts - Amazon's dominance in e-commerce and delivery is causing difficulties for retailers and traditional delivery services. - Amazon is outgrowing its major retail and delivery competitors in terms of revenue growth. - Amazon's AI capabilities are built around a massive database of supplier/consumer/product linkages, allowing for various applications such as supply chain optimization and fraud prevention. - Amazon's actual performance compared to its peers suggests a positive outlook for shareholders. - Amazon's financials show increasing revenue, gross profit, operating income, net income, and operating cash flow, as well as improving gross profit margin and operating margin. - The biggest risk for Amazon is potential scrutiny from antitrust enforcers.
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