Why Amazon's robots and AI make their stock still a bull’s favorite

Amazon is one of the Magnificent 7 components managing to cling to gains this year, eclipsed only by Meta. The rest of the closely followed trading acronym is down, led by a plunge in Tesla. The gains on Amazon are interesting given how much it plans to spend on capex this year. Similar to Microsoft and Meta this earnings season, Amazon recently uncorked a whopper of a capital spending guide. It sees $104 billion in capital expenditures this year, well above analyst forecasts of $80 billion to $85 billion going into its earnings reports. The Street has opted to stay bullish on Amazon after its results and surprising guidance for two reasons. Most analysts have pointed to a sales reacceleration in the key Amazon Web Services (AWS) cloud business later this year, amid the company's aggressive spending. And two, the company is driving a good bit of efficiency out of its bread and butter retail network. But can the bullishness on Amazon be sustained? Yahoo Finance executive editor Brian Sozzi sits down on the Opening Bid podcast with Morgan Stanley managing director Brian Nowak. Nowak has an Overweight rating on Amazon’s stock. Part of Nowak’s call reflects what Amazon is working on in terms of robots, an element to the investment thesis not often discussed.

Yahoo Finance's Opening Bid, brings you a high-octane take on the freshest analyst calls, wildest stock moves and shrewdest commentary in the business world. Executive Editor Brian Sozzi puts Wall Street's finest through their paces in this essential conversation for every investor - before the stock market opens.

Find this episode's transcripts and more episodes of Opening Bid at http://finance.yahoo.com/videos/series/opening-bid/.

Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com.

00:00-Brian Nowak on Opening Bid

01:40-Evaluating Amazon stock post-earnings

04:50-Alexa & AI

08:40-Is Meta's future looking bleak?

14:15-Deep dive into Amazon's robots

18:20-Competitive advantage

20:50-HOT TAKE

Yahoo Finance's Opening Bid is hosted by Brian Sozzi, and produced by Rachael Lewis-Krisky.

By bringing together strategic insights on how consumer Internet companies and leading platforms are changing and monetizing consumer behavior, and incorporating big picture themes into detailed models Brian Nowak leads the Morgan Stanley Internet research team in crafting actionable insights for clients.

Brian Nowak disclosures for companies mentioned in episode:

Amazon.com Inc: Investment relationship: Yes | Individual owns: No | Family owns: No | Company owns: Yes

Meta Platforms Inc: Investment relationship: Yes | Individual owns: No | Family owns: No | Company owns: Yes

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