The chapter explores Amazon's impressive operating margins growth at AWS, while discussing cost rationalization efforts and the potential impact of new generative AI investments. Insights are provided on how Amazon is maintaining high margins amid competition and its revenue growth projections, particularly focusing on the AWS cloud unit sales and advertising business. Additionally, the conversation highlights the shift towards selling AI to corporations with the launch of Amazon Q, projecting a decrease in high margins but a positive outlook for long-term revenue growth.
Amazon's cloud unit posted the strongest sales growth in a year, a sign that the retailer’s most profitable unit is recovering from a slump as businesses resume spending on technology projects. The shares rose in extended trading.
Bloomberg TV and Radio hosts Carol Massar and Tim Stenovec speak with Bloomberg Intelligence Senior Analyst for E-Commerce Poonam Goyal and Bloomberg Intelligence Senior Technology Analyst Anurag Rana for instant reaction and analysis.
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