Amazon (AMZN) CEO Andy Jassy recently provided an update that indicates a bright future ahead for the company’s stock. At the end of January, the stock was nearing an all-time high with a highly anticipated earnings report on the horizon. However, Amazon stock is down 3% in the last five days after a disappointing earnings report last week. While the company reported better-than-expected earnings and revenue for the fourth quarter, it gave disappointing guidance for the current period.
Fortunately, Amazon’s CEO’s recent announcement is good news for investors. According to Jassy, Amazon’s work/investment in artificial intelligence (AI). Indeed, Generative AI will play a huge role in every application that’s built for Amazon in the future. “It’s hard to overstate how optimistic we are about what lies ahead for AWS’ customers and business,” Jassy says.
He explained further: “While it may be hard for some to fathom a world where virtually every app has generative AI infused in it, with inference being a core building block just like compute, storage, and database, and most companies having their own agents that accomplish various tasks and interact with one another, this is the world we’re thinking about all the time. And we continue to believe that this world will mostly be built on top of the cloud with the largest portion of it on AWS.”
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Amazon Stock Dipping: Is Andy Jassy’s AI Proclamation a Good Sign for AMZN?
With AMZN dipping slightly, some stock experts are suggesting that now could be a good window to buy in. The company is expected to maintain solid stock performances in 2025 like it did last year. Thus, any period of flux can be seen as a chance to “buy the dip.” Additionally, this dip combined with the recent reassurance by CEO Andy Jassy of continued AI development is a good sign. AI and tech companies investing in software dominate Wall Street. That trend is expected to continue in the future.
Furthermore, AMZN is widely expected to continue outpacing the market over the next 12 months on the back of Amazon’s cloud computing and online sales strength. The positive outlook on Amazon as a stock is a near consensus on Wall Street. Of 72 analysts surveyed by CNN, 94% have a buy rating on the stock, with just 6% calling to hold. Moreover, the stock has a median price target of $235, with a high-end projection reaching $285, a 23% increase from its current position.