Motley Fool Money Amazon Wants More Power
13 snips
Jun 27, 2025 
Jason Moser and Matt Argersinger, both analysts from Motley Fool, discuss Amazon’s massive data center project and explore its implications for the tech and real estate sectors. They also analyze Hims & Hers’ recent struggles after parting ways with Novo Nordisk. Later, Peter Anevski, CEO of Progyny, shares insights on the growing importance of fertility benefits and how innovations in healthcare can reshape client relationships. Additionally, the group addresses Disney's box office challenges, spotlighting investment opportunities in Uber and Otis Worldwide.
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Amazon's AI Data Center Revolution
- Amazon's Project Rainier data center is a massive AI compute cluster using custom Tranium 2 chips.
- It exemplifies how data centers are evolving into AI factories that power next-gen artificial intelligence.
AWS Drives Amazon's Profit Growth
- Amazon Web Services (AWS) generates most of Amazon's operating profit, currently about 58%.
- The growing ad business diversifies revenue but AWS remains key to Amazon's financial future.
AI Boom Inflates Data Center REIT Values
- Digital Realty Trust's high earnings multiple reflects depreciation effects and heavy investment in AI-related data centers.
- Adjusted valuation metrics show a more reasonable 25x earnings multiple for this REIT involved in AI infrastructure.