Outlook on massive investments: Amazon plans billion-dollar spending on new technologies

Amazon has announced its investment plans for the coming years, placing a clear emphasis on expanding its technological infrastructure. The cloud platform AWS, in particular, is to be the focus of spending, which is expected to amount to approximately $75 billion in 2024 and increase further in the following year. CEO Andy Jassy highlights the opportunities presented by generative AI, describing this field as a unique opportunity that will sustainably benefit the company. He also emphasized Amazon's ability to achieve high long-term returns from its investments. Meanwhile, the number of Amazon Prime memberships continues to grow strongly both in the US and internationally, as CFO Brian T. Olsavsky pointed out. In October, new sales records were set during the Prime Big Deal Days, partly thanks to the high demand for Kindle models. The company is pleased that readers worldwide are increasingly turning to these devices, with over 20 billion pages now being read on them per month. In the field of artificial intelligence, Amazon reports an impressive growth rate. Jassy underscores the strong partnership with Nvidia and the development of proprietary AI solutions, which are experiencing increasing demand. Projects like the shopping assistant Rufus and the expansion of the Amazon advertising platform demonstrate the potential the company sees in AI. However, growth also entails challenges. Analysts note pressure on profit margins in the retail sector. Morgan Stanley advises caution in light of short-term uncertainties but sees substantial long-term potential through investments in high-margin areas like advertising. Wedbush and Bank of America also view Amazon's future optimistically but do not overlook short-term setbacks due to high investment costs.