AMZN
⏸️ Reports indicate Amazon (AWS) paused some data center lease commitments, similar to Microsoft, raising questions about cloud growth trajectory, though details remain unclear.
🎢 Amazon’s free cash flow history shows high volatility with periods of massive growth followed by investment phases, making valuation challenging but indicating significant reinvestment capacity.
🐌 Amazon, along with Apple, is perceived to be lagging in consumer-facing AI development (e.g., Alexa) compared to the rapid advancements seen from companies like OpenAI (ChatGPT).
@bernardodegarcia:
“Amazon is also super interesting at 320. Raymond James gives it a downgrade because the market is red, that’s why they do downgrades. We see Tesla, we see Amazon, we see Google, we see Meta. It almost worries me more, the news about Amazon, although nothing is confirmed, right? Amazon, because Wells Fargo says the company was pausing some of its data center lease commitments. Amazon shares fell more than 3%. It paused some leases over the weekend. We heard from various industry sources that AWS has paused a portion of its lease discussions on the colocation side, particularly internationally. The magnitude of the pause is unclear, but the positioning is similar to what we’ve heard recently from Microsoft. Amazon is quite behind. Amazon has Alexa, but damn squirrels, we do nothing, eh? Alexa and Siri are the most useless things you can imagine. I don’t understand how these companies move so fast and Apple, with all the money it has, moves so slowly, or Amazon moves so slowly. I don’t get it.”
Watch the exact part of the video where @bernardodegarcia talks about Amazon here:
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