Amazon's AWS and Cost Optimization

In this chapter, they discuss the street's expectations for Amazon's cloud unit, AWS. The CFO of Amazon is interviewed and asked about the growth of AWS, to which he responds that they are in a delicate situation and that while cost optimization work is slowing, there are still companies joining the effort. They compare the messaging from other cloud giants, Microsoft and Google, who also mention cost optimization efforts. They highlight that Amazon has been focusing on generative AI through its cloud unit, which suggests that it may be considered a solid third in the race behind Microsoft and Google. They mention that Amazon's fourth quarter sales guidance is slightly disappointing, particularly given the holiday season. The chapter ends with a note that Amazon's stock had initially gained but then turned negative.