Amazon vyvíjí vlastní AI čipy pro klíčová zařízení, včetně Echo Show 8, Echo Show 11 a Fire TV. Nové AZ3 a AZ3 Pro mají spouštět modely přímo v zařízení místo v cloudu.
Amazon is focusing on building chips for its "critical" consumer devices, the company's top hardware executive told CNBC.
In a wide-ranging interview on CNBC's "The Tech Download" podcast, Panos Panay, the head of devices and services at Amazon, discussed, for the first time, the company's approach to semiconductors in its own hardware and how it's experimenting with different types of AI-enabled gadgets.
"We do make our own end-to-end silicon for the devices that we ship," Panay said.
He said Amazon's custom silicon is in devices such as the Echo Show 8, Echo Show 11 and Fire TV.
In October, Amazon unveiled the AZ3 and AZ3 Pro chips designed to run AI models on-device rather than in the cloud. Many device makers see locally run AI as faster and more secure.
Some hardware makers like Apple design their own chips, which can give a consumer electronics company more control over the integration of hardware and software.
"On some of the more critical devices right now, our focus is end-to-end silicon, because to your point, if you really want that hardware and software connection ... and if we're going to go deliver this ambient experience in the home for people in the most secure way, we definitely need to think about how that end-to-end delivery of hardware comes together," Panay said.
Panay added that the company still also uses chips from companies like Qualcomm.
For Amazon, the focus on custom chips is part of its broader push to improve AI on devices.
Amazon launched Alexa+ for general availability in the U.S. this year. Alexa+ is a souped-up version of Amazon's digital assistant, which can handle more complex queries and tasks. Alexa+ can learn context and user patterns. Amazon has a range of hardware from Ring doorbells to Echo Devices and Fire TV. Alexa+ is intended to help users tie all their Amazon products together.
What Panos Panay said about future AI gadgetsAs Amazon's digital assistant gets advanced capabilities, Panay said he was thinking about how users will interact with devices and what that means for future gadgets.
"I think we might be moving away from a world of apps and screens," Panay said, adding that "conversation and context" will be more important for AI assistants.
Asked what kind of gadgets the company was working on, Panay said: "When you think about the future of AI devices, you got to be super skeptical right now for anyone who tells you they know what they are. I have a lab full of devices."
Last month, Qualcomm CEO Cristiano Amon told "The Tech Download" that the company was working on 40 new AI-powered devices as consumer electronics companies look for the next big hit after the smartphone.
Alexa+ will continue to compete with offerings from ChatGPT with OpenAI and Google Gemini which are also going after the consumer experience. Google is using the reach of the Android operating system to acquire more users, while companies like Samsung are building a lot of their AI features on Gemini models.
For Amazon, Alexa+ is a way for the company to lock users into its own ecosystem of devices and e-commerce.
Last year, Amazon made a major foray into wearables when it acquired Bee, a company that makes $49.99 wristbands that can understand voice and create lists, answer questions and draft notes.
Panay said there is a "whole roadmap of on-the-go devices." The executive described these devices as gadgets that people carry with them, that collect data and that people talk to.
"So when you are back in the home or when you are at work, that connection stays consistent and contextual," Panay said.
He added that "you won't have to wait long" for an Amazon product like this.
Amazon uzavřel na 241,70 USD, což je růst o 1,41 % a lepší výkon než širší trh. Investoři čekají na výsledky, kde analytici odhadují EPS 1,82 USD a tržby 196,87 miliardy USD.
In the latest trading session, Amazon (AMZN - Free Report) closed at $241.70, marking a +1.41% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
Heading into today, shares of the online retailer had lost 7.09% over the past month, lagging the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. In that report, analysts expect Amazon to post earnings of $1.82 per share. This would mark year-over-year growth of 8.33%. Simultaneously, our latest consensus estimate expects the revenue to be $196.87 billion, showing a 17.39% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.85 per share and revenue of $826.67 billion, which would represent changes of +23.43% and +15.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Amazon is currently a Zacks Rank #2 (Buy).
Investors should also note Amazon's current valuation metrics, including its Forward P/E ratio of 26.93. For comparison, its industry has an average Forward P/E of 17.07, which means Amazon is trading at a premium to the group.
It is also worth noting that AMZN currently has a PEG ratio of 1.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 182, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Alphabet vykázal tržby 109,90 mld. USD a provozní marži 36,1 %, taženou reklamou a cloudem. Amazon měl tržby 181,52 mld. USD, ale provozní marži jen 13,1 % kvůli maloobchodu.
Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) and Amazon (NASDAQ:AMZN) both dropped Q1 2026 results in late April. Google leaned on a high-margin ad engine and a suddenly explosive Cloud unit. Amazon leaned on faster AWS growth, a bigger chip business, and a retail machine that still eats capital for breakfast.
Search Ads Generate Cash. Retail Logistics Burns It. Google delivered $109.90B in revenue, up 21.8% YoY, with operating margin at 36.1%. Search & Other advertising alone hit $60.4 billion, up 19%, and Google Services ran at a 45.3% operating margin.
Amazon posted $181.52B in revenue but converted it into a 13.1% operating margin. AWS grew 28%, its fastest pace in 15 quarters, on a $150 billion run rate. Retail dragged the blended margin lower, the structural tax Alphabet avoids.
Driver Alphabet Amazon Main engine Search ads + Cloud AWS + Stores Op margin 36.1% 13.1% Cloud growth 63% 28% Two AI Bets, Two Very Different Bills Sundar Pichai framed the quarter around vertical integration. Cloud backlog nearly doubled sequentially to “the fact that we own frontier models and own the silicon really helps us stay ahead of the curve.”, and Cloud margin jumped to 32.9% from 17.8% a year earlier.
Andy Jassy is playing heavier. Amazon’s custom chip business runs at $20 billion with Trainium commitments over $225 billion and Anthropic locking in another $100 billion. Capex hit $44.20B in the quarter and free cash flow collapsed 95% on a trailing basis. Alphabet’s FCF fell too, down 46.6%, but from a cleaner starting point.
The Next Test Is Whether Capex Pays Back Prediction markets price Amazon 2026 capex above $200B at 0.77 probability. Alphabet raised full-year capex guidance to $180-190 billion, yet Pichai says core AI response costs already dropped more than 30% after the Gemini 3 upgrade. Efficiency compounds on one side. Fulfillment costs grow on the other.
Watch whether Google Cloud expands margin while shipping the next Gemini Pro, which Polymarket traders give an 85.9% probability of arriving by July 31. For Amazon, monitor Q2 operating income guidance of $20-24B and whether AWS holds its 28% pace.
Why Alphabet Screens Cleaner on This Quarter On this quarter’s numbers, Alphabet screens cleaner. A P/E of 16 against Amazon’s 33.01, a 45% Services margin, and a Cloud backlog that dwarfs peers is a rare combination. Amazon’s case rests on a longer runway: satellite ambitions, robotics, and a chip franchise that could rival NVIDIA. The near-term contrast is an ad machine already printing cash to fund its own AI buildout versus a retail-plus-AWS model still absorbing heavy capex.
Amazonu loni vzrostly emise o 16 % na téměř 80,9 milionu tun CO2e, hlavně kvůli vyšší spotřebě energie v datových centrech pro AI. Firma přesto dál drží cíl čisté nuly do roku 2040.
by Lisa Stiffler on Jul 1, 2026 at 9:00 amJuly 1, 2026 at 7:53 am
Wind Wall, a wind farm in California’s Tehachapi Mountains, produces renewable energy for Amazon Web Services. (Amazon Photo) Amazon’s carbon footprint jumped 16% last year after several years of little or no increase. The company emitted nearly 80.9 million metric tons of carbon dioxide equivalent in 2025. By comparison, that’s slightly higher than the nation of New Zealand’s emissions.
Amazon disclosed its climate-related data in its most comprehensive sustainability report to date, which includes a breakdown of its carbon sources, water use and other environmental impacts.
Not surprisingly, energy use showed the biggest rate of increase in the 2025 carbon tally as Amazon and other tech companies are working to rapidly expand their data center capacity to meet AI computing demand.
For the first time since 2019, the company also reported an uptick in its “carbon intensity” — a measure of how much carbon was emitted relative to each dollar of revenue. Amazon has promoted this metric as a sign that it can decouple its growth from its climate impacts.
*Million of metric tons carbon dioxide equivalent. † Grams of carbon dioxide equivalent per dollar of revenue. ‡ Carbon emissions for 2025 were calculated using a market-based method, including the application of Environmental Attribute Credits (EACs). (2025 Amazon Sustainability Report) Despite emissions moving in the wrong direction and ongoing data center-driven challenges, the Seattle-area company remains committed to its pledge of net-zero carbon emissions by 2040.
When it comes to that goal, “I remain confident and optimistic in the overarching vision and the long-term progress we continue to make toward it,” said Kara Hurst, Amazon’s chief sustainability officer, in the foreword to the company’s annual report.
The report highlights areas of success that include:
Data center efficiency: Amazon’s data centers are 9% more efficient than the public cloud average and 30% more efficient than on-premises data centers at directing energy toward computing rather than cooling, lighting or overhead. Data center water use: Amazon is seven times more efficient in its water use than the industry average thanks to its use of air cooling at most sites, most of the year. 100% clean energy overall: For the third year running, Amazon matched its company-wide electricity use with an equivalent volume of purchased clean energy, although it technically still draws on fossil fuels for some of its energy. Electric vehicle fleet: It has the largest corporate EV fleet in North America, with more than 52,700 delivery vans worldwide. It’s halfway to meeting its 2030 goal of 100,000 EVs. The company also reported improvements in reducing packaging and plastic use in delivered items; increasing use of low-carbon building materials in data center construction; and progress toward becoming water positive at its data centers, meaning it aims to replenish more water to communities than it uses.
The Amazon-backed Climate Pledge — an effort to get other organizations to commit to net-zero carbon emissions by 2040 — has grown to 656 signatories after adding 107 companies this year. It marks a notable increase at a time when companies are growing quieter about climate commitments, with some stepping back from earlier goals.
But the surge in data center investment shows little sign of slowing, which will keep complicating Amazon’s path to lower emissions. CEO Andy Jassy said Amazon expects to spend a record $200 billion in capital expenditures this year, including “AI, chips, robotics, and low-Earth orbit satellites.”
Not all reactions to that buildout have been positive — even within the company. Members of Amazon Employees for Climate Justice this month testified before the Seattle City Council in favor of data center requirements for renewable energy and labor protections, though Amazon doesn’t operate any data centers within city limits.
In the report, Amazon CSO Hurst acknowledged that AI-fueled advances could catalyze sustainability solutions or slow progress toward climate goals.
“But what alternative do we have,” she said, “but to continue to invest, learn, and move forward to try to solve one of the world’s most challenging issues?”
Artificial intelligence has produced no shortage of headline-grabbing stories. Every week seems to bring another breakthrough model from OpenAI, Anthropic, or Google, while Nvidia (NASDAQ:NVDA | NVDA Price Prediction) dominates discussions around the chips powering the AI revolution.
Yet history shows that the companies creating the most value aren’t always the ones making the most noise. During the cloud computing boom, Amazon (NASDAQ:AMZN) quietly built Amazon Web Services (AWS) into a business that now generates tens of billions of dollars in operating income each year. The same pattern may be emerging in AI, where Amazon’s biggest advantage isn’t building the best chatbot — it’s becoming the platform where businesses deploy them.
Bedrock Is the AI Platform Most Investors Overlook Amazon CEO Andy Jassy told analysts during the first-quarter earnings conference call, “Bedrock…saw 170% growth in customer spend quarter over quarter and processed more tokens in Q1 than all prior years combined.”
That isn’t just a usage milestone — it suggests enterprise AI adoption has shifted from experimentation to production.
Bedrock isn’t another large language model competing with ChatGPT or Gemini. Instead, it serves as a managed platform that lets businesses access multiple foundation models — including Anthropic’s Claude, Amazon’s Nova, Meta Platforms‘ (NASDAQ:META) Llama, and others — through a single interface while AWS handles security, governance, and infrastructure.
That strategy mirrors what AWS did in cloud computing. Companies didn’t choose AWS because Amazon built the best database or operating system. They chose it because AWS became the easiest place to run almost everything.
Amazon Is Competing for the Most Valuable Layer of AI The AI market is rapidly separating into distinct layers.
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Company Primary AI Focus Nvidia AI chips and computing hardware Microsoft (NASDAQ:MSFT) Azure AI platform and OpenAI partnership Alphabet (NASDAQ:GOOG) Gemini models and Vertex AI cloud platform Amazon AWS infrastructure and Bedrock AI platform Unlike OpenAI or Anthropic, Amazon doesn’t need to win the race to build the smartest model. It only needs to become the preferred platform where enterprises deploy AI applications. That opportunity may be larger than many investors appreciate.
During Amazon’s Q1 call, Jassy also noted that AWS’s AI business has reached an annual revenue run rate exceeding $15 billion, while Bedrock customer spending grew 170% quarter-over-quarter. Those figures suggest AI workloads are moving from pilot projects into everyday business operations.
As more companies deploy AI agents capable of completing multi-step tasks, inference demand — the computing required every time an AI model generates an answer — should continue expanding. Every inference request creates demand for GPUs, networking equipment, memory chips, and cloud infrastructure, all of which strengthen AWS’s ecosystem.
Investors May Be Looking in the Wrong Place Granted, Amazon doesn’t receive the same attention as Nvidia’s GPUs or OpenAI’s newest model releases. That said, enterprise customers typically care less about who built the model than whether their applications run securely, reliably, and at scale. That’s precisely where Bedrock fits.
Surprisingly, Amazon’s decision to support multiple competing AI models could become one of its biggest competitive advantages. Businesses gain flexibility without locking themselves into a single vendor, while Amazon earns revenue regardless of which model customers ultimately choose.
Key Takeaway In short, Amazon may not produce the flashiest AI headlines, but it is positioning itself to own one of the industry’s most valuable pieces: the enterprise platform where AI applications are built and deployed. The latest Bedrock usage figures suggest that strategy is already gaining traction.
Ultimately, investors shouldn’t view Amazon as simply another participant in the AI race. They should view it as the company building the digital highway that many of the race’s winners will travel. If enterprise AI adoption continues accelerating, Bedrock could become as foundational to artificial intelligence as AWS became to cloud computing — and that would make Amazon one of the AI era’s biggest long-term beneficiaries.
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AWS oznámila miliardové iniciativy pro veřejný sektor v cloudu a AI, včetně 1 miliardy USD pro americkou zpravodajskou komunitu a 1 miliardy USD do globálního programu Forward Deployed Engineering.
Amazon has announced several multi-billion dollar cloud/artificial intelligence (AI)-focused public sector initiatives.
The announcements, made Tuesday (June 30) at the 2026 Amazon Web Services (AWS) Summit in Washington, D.C, include specialized infrastructure for defense contractors, migration incentives for intelligence agencies, and a global engineering program for AI deployment.
Among the initiatives is a $1 billion cloud incentive program for the U.S. intelligence community. While AWS is the intelligence services longest-running cloud partner, many workloads have yet to migrate, leading to the launch of this program to “eliminate the migration costs that have kept some locked in on-premises systems.”
In the defense sector, AWS has introduced its Secret Cloud for Industry (ASCI), designed to let defense contractors run contractor-owned classified workloads on the same AWS infrastructure trusted by the Pentagon, “in their own physically and logically isolated environment purpose-built to meet the most demanding security and compliance requirements.”
AWS will also invest $1 billion in Forward Deployed Engineering (FDE), a new global organization that will put thousands of engineers on-site with customers to co-develop AI solutions. This program is aimed at accelerating the development of AI applications from months into days.
“At the center is the AI-Driven Development Lifecycle, a new approach to software development that combines AI-powered execution with human oversight and dynamic team collaboration that builds intelligence for a customer’s next project,” the company said.
In other Amazon news, PYMNTS wrote recently about how the company and rival Walmart had moved past the battle for consumer spending in search of something “even more consequential:” making themselves into the operating systems between shoppers, brands, advertisers and commerce infrastructure.
For Amazon, the report said, that means things like continuing to promote Prime Day as a membership and ecosystem engine rather than merely a shopping event.
For Walmart, it means the expansion of the company’s retail media ambitions via a new partnership with Google and YouTube, offering advertisers more access to Walmart shopper data and closed-loop measurement capabilities.
“Individually, these stories appear disconnected,” the report added. “Collectively, they point toward a single conclusion: the future of retail may depend less on who sells products and more on who controls the systems that influence how products are discovered, marketed and purchased. Amazon found those opportunities in cloud computing, advertising and subscriptions. Walmart sees them in advertising, marketplace services, memberships and data monetization.”
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Průzkum Jefferies ukázal, že 95 % IT manažerů čeká příští rok vyšší cloudové rozpočty a 56 % CIO plánuje více utratit za AWS. To podporuje Amazonovy investice do AI infrastruktury.
There's a growing argument that the market has been pricing Amazon.com Inc. NASDAQ: AMZN on fear rather than fundamentals in recent weeks. The CapEx concerns, the FTC noise, and the Blue Origin setback have all combined to leave the stock looking unusually unloved.
Amazon.com Today
$238.71 -1.43 (-0.59%)
As of 03:18 PM Eastern
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52-Week Range$196.00▼
$278.56P/E Ratio28.55
Price Target$312.78
But beneath the headlines, the underlying demand picture for one of Amazon's biggest growth engines is suddenly looking very strong. As we'll see below, a new survey of IT executives by Jefferies has just delivered exactly the kind of data point the bulls have been looking for. According to the poll of 40 tech executives, cloud spending is expected to grow more than 10% in 2026, up from 9.6% in 2025.
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Even more strikingly, an overwhelming 95% of respondents said they expect their cloud budgets to increase next year.
For Amazon, whose AWS unit is the world's leading cloud provider, that's exactly the kind of demand backdrop that the recent share price weakness has not priced in.
The Survey That Changes the ConversationShares of Amazon are currently trading around $240, having recovered modestly from last week's lows but still down meaningfully from the all-time highs set last month. The selling pressure has been driven by a familiar mix of CapEx concerns and a broader cooling in sentiment toward AI infrastructure plays. That backdrop is exactly what makes the Jefferies survey so timely.
Amazon.com, Inc. (AMZN) Price Chart for Tuesday, June, 30, 2026
The survey showed "bullish spend intentions" for AWS specifically, with 56% of CIOs expecting to spend more on the platform in 2026. While placing AWS slightly behind Microsoft Corp NASDAQ: MSFT in the rankings, the data still strongly endorsed the platform's positioning at a time when the market has been questioning whether Amazon's enormous CapEx spending will translate into meaningful revenue.
Why This Hits Right Where the Market Is WrongThe reason this matters so much is that it directly challenges the bearish narrative that's been driving the recent selloff. Much of Amazon's underperformance has come down to a single concern—that the company is spending too much on AI infrastructure too fast.
However, the Jefferies survey points to exactly the kind of demand picture that supports the CapEx story. If 95% of CIOs plan to increase cloud spending next year, and AWS is clearly a beneficiary of that trend, then the spending Amazon has been doing on data centers and AI infrastructure isn't speculative. It's being built to meet demand that the customers themselves are explicitly telling analysts they plan to deliver.
In other words, the bulls who've been arguing that the CapEx concern is overblown just got a serious data point to support their case. The market may not have caught onto it yet, but it usually doesn't take long for survey data this constructive to start showing up in analyst notes and revised earnings estimates.
The Bigger Strategic PictureWhat makes the survey particularly encouraging is the role of AI within it. About 68% of CIOs now have a dedicated AI budget, and around 11% of overall IT budgets are now allocated to AI workloads. Just as importantly, 73% of respondents said their actual year-to-date AI spending is tracking above their initial budgets, with some companies already having burned through their full annual AI allocation.
For AWS, which sits at the heart of the AI infrastructure stack and counts Anthropic as one of its most important customers, that's exactly the kind of dynamic that should compound into meaningful revenue growth in the quarters ahead.
Combine it with its other deepening enterprise AI partnerships, and the continued momentum within the broader Amazon business, and the bull case at $240 looks considerably more attractive than the recent price action would suggest.
Where That Leaves the OpportunityTo be sure, none of this immediately solves the near-term challenges Amazon faces. The FTC situation is still in play, the broader AI CapEx narrative will take time to shift, and there could be more volatility ahead before sentiment fully turns. The patience tax that comes with owning Amazon right now is real.
But for those willing to look past the noise, the Jefferies survey quietly shifts the underlying argument. The market has been worrying about whether AWS's demand justifies the spending. The customers themselves are now telling analysts it does.
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AWS zřizuje novou interní organizaci pro forward-deployed inženýry zaměřené na AI a Amazon na ni vyčlení 1 miliardu USD. Tým má pomáhat firmám s nasazením agentů přímo u zákazníků.
As companies struggle to integrate AI, they’re increasingly ready to bring in outside help — and service providers are launching new purpose-built groups to make sure they get it.
On Tuesday, Amazon Web Services (AWS) launched a new internal organization for AI-focused forward-deployed engineers. Engineers on the new team will embed within companies to deploy purpose-built agents, focusing on fast engagements and customer self-sufficiency.
In a post announcing the new org, AWS VP of Frontier AI Francessca Vasquez emphasized that the org would do more than build and maintain requested systems. “Customers leave AWS FDE deployments with both new solutions and new engineering capabilities,” the announcement reads. “Along with agentic systems running in their own AWS environment, they gain lasting AI skills, workflows, and patterns they can use to innovate independently.”
Amazon says $1 billion will be committed to the new org, although the figure represents internal Amazon resources rather than a joint venture or conventional investment.
Pioneered by Palantir, the forward-deployed engineer (FDE) model has become increasingly popular as a way to manage AI deployments. In a typical FDE system, an engineer from the contracting company (in this case, AWS) works for the client temporarily while the system is being established, allowing them to respond directly as internal opportunities or challenges emerge.
In the FDE model, much of the relevant technology can be reused between deployments, while still being tailored to the specifics of each company’s needs and workflows. It also gives the client company an influx of expertise and puts primary responsibility for the deployment in the hands of the contractor. The biggest downside is the labor involved, since it means maintaining a full corps of FDE engineers to install and maintain the company’s technology.
Both OpenAI and Anthropic have launched their own FDE joint ventures in recent months, valued at $4 billion and $1.5 billion, respectively. In those two cases, the AI labs were paired with private equity firms, which provided both the capital to launch and connections with client corporations in their portfolios.
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Russell Brandom has been covering the tech industry since 2012, with a focus on platform policy and emerging technologies. He previously worked at The Verge and Rest of World, and has written for Wired, The Awl and MIT’s Technology Review. He can be reached at [email protected] or on Signal at 412-401-5489.
Amazon těží ze silné poptávky během Prime Day a BofA čeká, že 20% zvýšení cen vybraných GPU workloadů v AWS přidá 1–2 procentní body k růstu AWS v druhé polovině roku.
In a note released Monday, the firm sees the combination of stronger June retail data and a 20% price increase on select AWS GPU workloads as setting up a cleaner second-half growth story for the stock.
AMZN stock is moving. See the chart and price action here. Prime Day DeliversAdobe Analytics data show U.S. online retail spend during the Prime Day window at roughly $26.4 billion, up 9% year over year, a result that lines up with Bank of America’s expectation for mid-single-digit global GMV growth as some international events move into the third quarter.
Discounts were broadly similar to last year, but Numerator data flagged an 11% drop in average order value on Amazon and softer satisfaction scores, pointing to a customer shift toward everyday essentials and grocery rather than big-ticket items.
Even with smaller baskets, BofA still expects Amazon’s North America retail segment to slightly beat Street estimates for about 14% year-over-year growth.
The catch for near-term traders is timing. Bank of America estimates around $7 billion to $8 billion of sales likely shifted into the second quarter from the third quarter due to this year’s Prime Day schedule, creating potential noise around Amazon’s Q3 outlook even if full-year fundamentals remain intact.
AWS Price HikeOn the cloud side, Amazon quietly announced a roughly 20% price increase effective July 1 for EC2 Capacity Blocks tied to GPU-heavy machine-learning workloads, following a prior 15% hike in January.
Bank of America’s work suggests effective prices paid by customers have already risen from 2022 trough levels, and the new adjustment should add an estimated 1–2 percentage points to second-half AWS growth.
Beyond core capacity, the firm points to ramping commitments from OpenAI and Anthropic on AWS infrastructure, reinforcing a view that Amazon is leaning into AI demand with greater pricing discipline.
BofA flags some risks including tougher competition from offline and local retailers, cloud share battles in advanced AI and heavy AWS investment that could pressure margins if macro conditions soften.
Still, with solid Prime Day demand and AWS asserting pricing power in AI workloads, Amazon’s stock remains a key name to watch as the market balances short-term guidance noise against a strengthening multi-year thesis.
AMZN Stock Price Activity: Amazon stock was down 0.86% at $238.07 at the time of publication Tuesday, according to data from Benzinga Pro.
Over the past month, AMZN has declined about 10.6% versus a 1.6% decline in the S&P 500 and is up roughly 3% year-to-date compared to the index’s 8.4% gain.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Australský regulátor žaluje Amazon AU kvůli údajným nefér podmínkám Prime Video, které umožnily přidání reklam bez kompenzace pro více než 1 milion ročních předplatitelů od listopadu 2023 do srpna 2025.
A downtown building is wrapped in Amazon Prime advertising ahead of Comic-Con International, in San Diego, California, U.S. July 22, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
SummaryCompaniesAustralian competition watchdog sues Amazon's local unitACCC alleges Amazon unit used unfair Prime Video contract termsACCC seeking declarations, penalties, among other ordersJune 30 (Reuters) - Australia's competition regulator said on Tuesday it has taken Amazon's (AMZN.O), opens new tab Australian unit to court, alleging its Prime subscription contracts contained unfair terms that allowed the company to add advertising to its video streaming platform.
The Australian Competition and Consumer Commission (ACCC) alleged that between November 2023 and August 2025, Amazon Australia used unfair Prime Video contract terms to make negative changes for over 1 million annual subscribers without offering compensation.
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"We allege that Amazon AU included multiple unfair terms in its contracts with Australian annual Prime subscribers, and it then relied on some of these terms to bring ads onto Amazon Prime Video," said ACCC Chair Gina Cass-Gottlieb.
After July 2024, subscribers who wanted to maintain ad-free streaming had to pay an additional A$2.99 per month. This was despite annual subscribers already having paid A$79 ($54.40) upfront for the service, the ACCC added in its statement.
The regulator also alleged that Amazon.com Services LLC was knowingly concerned in the Australian unit's conduct, adding that the former was involved in drafting the Australian contracts that contained the terms.
The ACCC is seeking declarations, penalties, consumer redress, costs and other orders.
In an emailed response to Reuters, a spokesperson for Amazon Australia said the firm is "reviewing the case filed by the ACCC in detail" and had cooperated with the regulator throughout the investigation.
The ACCC investigated Amazon's local unit's contracts after receiving consumer reports about the introduction of ads to Prime Video in 2024, according to its statement.
($1 = 1.4522 Australian dollars)
Reporting by Shivangi Lahiri in Bengaluru, additional reporting by Kumar Tanishk; Editing by Maju Samuel and Vijay Kishore
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Amazon se mění v integrovanou technologickou platformu s cloudem, AI, reklamou, logistikou i satelitní sítí Kuiper. AWS přitom generuje zhruba 37,6 miliardy USD čtvrtletních tržeb.
Prime Day generates billions of dollars in sales and dominates headlines every summer. It just generated a record $26.4 billion in sales across the four-day event last week. Yet focusing only on Amazon‘s (NASDAQ:AMZN | AMZN Price Prediction) annual shopping event misses the much bigger story.
The company has quietly transformed itself into one of the world’s most integrated technology platforms, combining cloud computing, artificial intelligence, logistics, advertising, satellite communications, and digital commerce under one roof. Few companies possess that breadth. Even fewer have managed to make each business strengthen the others.
For long-term investors, those connections — not discounted electronics — may ultimately prove to be Amazon’s greatest competitive advantage.
Amazon’s Competitive Moat Keeps Getting Wider Amazon’s biggest strength isn’t any single business. It’s how all of its businesses reinforce one another.
The company’s retail operations introduced more than 260 million Prime members worldwide, creating one of the largest recurring subscription ecosystems anywhere. Those members spend more, shop more frequently, stream Prime Video, use Amazon Music, and increasingly interact with Amazon’s growing advertising platform.
Meanwhile, Amazon Web Services (AWS) continues serving as one of the foundations of the global cloud industry. AWS generated approximately $37.6 billion in quarterly revenue as enterprises accelerate AI deployments. Every new AI model requires computing power, storage, networking, and security — services AWS already provides at enormous scale.
Company Primary Strength Strategic Advantage Amazon Cloud, AI, commerce, logistics, advertising Vertically integrated ecosystem Microsoft (NASDAQ:MSFT) Enterprise software and Azure Deep enterprise relationships Alphabet (NASDAQ:GOOG) Search, cloud, AI Data and advertising leadership Nvidia (NASDAQ:NVDA) AI chips Dominant AI accelerator hardware Amazon stands apart because it controls nearly every layer — from fulfillment centers and warehouses to cloud infrastructure and AI chips.
AI Infrastructure Could Be the Next Growth Engine The AI boom is expanding Amazon’s opportunity well beyond online shopping.
One area attracting growing attention is Project Kuiper, Amazon’s low-Earth-orbit satellite network. Much like Starlink transformed SpaceX (NASDAQ:SPCX) into a communications infrastructure company, Kuiper gives Amazon the ability to design its own satellites, customer terminals, and networking systems while extending AWS closer to customers through edge computing. Over time, that vertical integration could create powerful synergies between cloud services and global connectivity.
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Amazon is also reducing its dependence on outside chip suppliers. Its Trainium2 processors are ramping faster than any previous AWS custom silicon platform while delivering roughly 30% to 40% better price-performance than many traditional GPU alternatives for AI workloads. Management also disclosed approximately $225 billion in customer commitments supporting future infrastructure demand, with much of today’s Trainium capacity already reserved. It may soon start selling the chips to third-party customers.
Advertising is quietly becoming another major earnings driver. Amazon says Prime Video advertisements now reach approximately 315 million viewers worldwide, creating another recurring revenue stream layered on top of its commerce ecosystem.
Cash Burn Looks Scary — Until You Look Deeper Granted, Amazon isn’t a textbook value stock. The company continues spending enormous sums building AI data centers, expanding logistics infrastructure, and launching Kuiper satellites. Free cash flow has turned negative as capital expenditures surged, Amazon pays no dividend, repurchases virtually no shares, and stock-based compensation continues creating shareholder dilution.
Those concerns deserve attention, but context matters. The company generated approximately $148.5 billion in trailing operating cash flow while holding more than $153 billion in cash and short-term investments — more than double its 2022 balance. Those figures give Amazon flexibility that many competitors simply don’t possess.
Investors are right to question whether today’s AI spending can continue indefinitely. However, companies like Amazon, Alphabet, and Nvidia currently have the balance sheets necessary to fund that investment without placing meaningful financial stress on their businesses.
Key Takeaway In short, Amazon has become much more than the world’s largest online retailer. It now operates one of the most interconnected technology ecosystems ever assembled, spanning cloud computing, AI infrastructure, satellite communications, logistics, advertising, and digital commerce.
The stock may not be deeply undervalued, and heavy capital spending will likely pressure free cash flow for some time. Regardless, Amazon has followed this playbook for decades — reinvesting aggressively today to widen its competitive moat tomorrow. With $148 billion in operating cash flow, more than $153 billion in liquidity, and multiple AI-driven growth engines still in their early stages, the company appears well positioned to turn today’s spending into tomorrow’s earnings power. For patient investors, that’s a trade-off worth understanding.
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Američtí online nakupující utratili během Prime Day více než 26,4 miliardy USD, což je meziročně o 9,3 % více. Průměrná hodnota objednávky ale klesla na 47,66 USD z 53,34 USD.
An Amazon box moves along a conveyor belt at Amazon?s fulfillment center in Robbinsville, New Jersey, U.S., December 1, 2025. REUTERS/Eduardo Munoz// Purchase Licensing Rights, opens new tab
SummaryCompaniesU.S. online shoppers spent more than $26.4 billion during June 23 to June 26, Adobe Analytics saidNumerator said average Prime Day order size fell to $47.66 from $53.34Adobe said discounts matched last year's levels, suggesting promotions may stay heavy into holidaysNEW YORK, June 27 (Reuters) - U.S. online shoppers clawed for deals on electronics, appliances, items for children and everyday essentials during Amazon.com's (AMZN.O), opens new tab annual sales event Prime Day, spending more than $26.4 billion from June 23 through June 26, according to data firm Adobe Analytics.
The multibillion-dollar spend marks a 9.3% year-over-year increase that retail experts attribute to high inflation coupled with shoppers' purchasing of more discretionary, long-lasting products.
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Adobe said that strong discounts during the four-day Prime event drove many shoppers to purchase higher-priced items including electronics, toys, appliances and personal care products, meaning that retailers may have to continue offering deep discounts to get their products off the shelves for the holiday season.
In addition to discounts, tax refunds "could have provided a sizable tailwind to a lot of these discretionary categories," CFRA Research analyst Arun Sundaram said. Tax refunds will not be a factor for most shoppers in the fall and winter months.
Tax refund amounts increased 11.1% to $3,462 in 2026, according to data from the U.S. Internal Revenue Service, giving shoppers a financial boost to help with purchases they had been holding off on, Sundaram said.
Shoppers also purchased kids' items and apparel ahead of back-to-school season, personal hygiene products and home goods, signaling that the Prime Day customers aimed to stock up on products "that they were going to buy anyway," Sonia Lapinsky, managing director of retail at consultancy Alix Partners, said.
"It's really pointing to that fatigued consumer. They're not necessarily spending more-- they're just trying to spread what they have over better deals and discounts," she said.
Prime Day deals were on par with last year's discounts, according to Adobe. Discounts for electronics averaged 24% compared to last year's discounts of 23% , apparel at 24% compared to 23% and toys at 20% versus last year's 19%.
A separate survey by data firm Numerator, which tracked more than 178,000 Prime Day orders, showed that the average order size was $47.66, down from $53.34, a signal that some experts say shows that consumer strength is waning.
Reporting by Arriana McLymore in New York; Editing by Chizu Nomiyama
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Arriana McLymore is a New York-based reporter covering e-commerce, online marketplaces, alternative revenue streams for retailers and in-store innovation. She previously reported on telecoms and the business of law.
Amazon Web Services zvýšil ceny rezervací EC2 Capacity Blocks for ML zhruba o 20 % od července. Jde o další signál, že nedostatek paměťových čipů zdražuje AI cloud.
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An AWS data center Noah Berger/Getty Images via Amazon Web Services Amazon raised prices for several key AI cloud offerings, the latest sign that memory chip shortages are driving up the cost of some technology.
Amazon Web Services recently announced price increases for EC2 Capacity Blocks for ML. This is a cloud service that lets companies reserve GPUs in advance.
The changes mean hourly rates for renting several types of cloud servers will jump by roughly 20% starting in July. AWS had already raised prices for the same service by about 15% in January.
"Amazon EC2 Capacity Blocks for ML reservation prices are updated periodically based on supply and demand," the company said in its announcement. Amazon didn't immediately respond to a request for comment on Friday.
Similar price increases are happening in other parts of the tech industry, as tech giants pass memory price pressure on to customers. Apple raised prices this week, blaming soaring memory chip costs. Xbox did the same, and Elon Musk complained about unprecedented memory price increases.
The AWS move is more consequential than your next MacBook or gaming console costing a couple of hundred dollars more. As the world's largest cloud provider, AWS underpins many software services, and millions of developers rely on the cloud service to offer apps and other tech products. Price increases of 15% and now 20% will likely ripple through these sectors in coming quarters.
The price hikes reflect a broader shift in tech: AI is increasingly constrained by physical limitations, rather than software availability. Tight memory chip supply and strong GPU demand are raising costs for cloud providers.
One of the biggest physical constraints right now is high-bandwidth memory, a critical component packaged alongside advanced AI chips. AI cloud services run on these chips and servers, so shortages and price increases like this have a big impact on data center expansion plans and, ultimately, the supply of AI.
"As there is a limit to how much memory can be produced, then there is a limit to how many GPUs can be produced, which means that there's a limit to how many data centers can be built," Peter Berezin, chief economist at BCA Research, wrote on X on Friday.
Berezin added that cloud providers can pass on higher infrastructure costs because customers have few alternatives when GPU capacity is scarce, giving hyperscalers AWS, Microsoft, Google, and Oracle greater pricing power.
"While the memory shortage raises their costs, it also keeps the demand for compute above the available supply, which gives them greater pricing power over access to cloud computing," Berezin wrote on X.
The same shortages pushing up AI cloud prices have propelled memory-chip makers such as Micron and SK Hynix to records, reflecting investor expectations that AI-driven demand will keep the market tight, and prices high, for years.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
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Amazon tvrdí, že jeho vlastní čipy pro datová centra jsou jedním z největších byznysů v oboru a mají roční tempo tržeb 50 miliard USD. Trainium2 je už téměř vyprodaný a Trainium3 je téměř plně rezervovaný.
CANADA - 2026/06/19: In this photo illustration, the AWS (Amazon Web Services) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Worries in the market regarding Amazon's significant investment in AI might underestimate the impressive proprietary technology being developed to support it.
Despite a history of fast surges, Amazon has felt rather constrained as of late, trading sideways for nearly six months. A key question among investors is: will the company’s significant investment in artificial intelligence yield a substantial return, or will this expenditure not produce adequate returns?
However, concentrating on the spending overlooks the more critical narrative. Amazon’s approach in the fiercely competitive AI arena encompasses more than just simple purchases; the firm is constructing the vital infrastructure. In doing so, it is stealthily establishing itself as one of the most significant semiconductor manufacturers globally.
Is Amazon Among The Top Three Global Chip Firms?Buried within the most recent earnings call was a striking claim from management: if its custom silicon division operated independently, its yearly revenue run rate would be $50 billion. To provide context, the company asserts its “custom silicon segment is now one of the top three data center chip enterprises worldwide.” This isn’t merely a secondary endeavor. This is a strategic cornerstone slowly materializing in plain view, centered on two primary products: Graviton for general computing and Trainium for AI applications.
While the public perceives AWS primarily as a cloud service provider, it is swiftly transforming into a vertically integrated powerhouse. It has progressed from simply leasing server space to designing and implementing its own high-performance, cost-effective silicon to operate that space. And customers are eagerly awaiting their turn.
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Demand Has Already Surpassed SupplyThis isn’t a theoretical edge; the demand is tangible and urgent. The company’s Trainium2 AI chip is already “primarily sold out.” Its successor, Trainium3, which has just commenced shipping, is “almost fully subscribed.” Most notably, Amazon reports that “a large portion of Trainium4, which is still approximately 18 months from widespread availability, has already been booked.”
When clients are reserving hardware that is set to be available in a year and a half, it indicates a strong demand for the unique price-performance ratio that Amazon is presenting. The customer base extends far beyond AI startups. Tech titan Meta recently “committed to utilizing tens of millions of Graviton cores” to advance its own AI initiatives, opting for Amazon’s custom CPU that delivers up to “40% superior price performance” compared to alternatives.
How Is This Addressing The Spending Concern?This is the vital connection. The bearish argument against Amazon is predicated on the massive cost of its AI expansion. However, creating its own chips fundamentally alters the cost dynamics of that investment. Management has been clear about the benefits, indicating that at scale, it anticipates Trainium will “save us tens of billions of dollars in capital expenditures every year.”
In addition to the cost savings, it establishes a robust competitive advantage. The company forecasts that its in-house silicon will “yield several hundred basis points of operating margin advantage compared to relying on external chips.” In a business as substantial as AWS, which currently operates at a $150 billion annualized revenue run rate, such margin enhancement is a powerful catalyst for profit.
While investors have been closely examining every dollar of capital spending, Amazon has been developing the very technology that could significantly enhance that capital's efficiency. It answers the market's most pressing question, suggesting that the company is evolving beyond mere participation in the AI revolution to construct a foundational, high-margin engine to sustain it for years ahead.
Where Will An Opportunity Like This First Manifest?An opportunity of this nature only counts once it begins to reflect in the financial figures, and the first concrete indication is in management’s outlook. The instant a company can actually anticipate new revenue, it adjusts its forecast, and an upward adjustment that the market is already rewarding serves as some of the clearest evidence that a narrative like this is becoming a reality.
A growth narrative this credible warrants action, but investing through a single stock means accepting all the fluctuations that one company experiences. A more intelligent strategy is to maintain a collection of stocks where the long-term perspective is equally robust, ensuring that the sustainable upside remains intact and no unexpected event can compromise it. This is how patient capital flourishes.
Differentiating the genuinely sustainable narratives from the merely appealing ones is the foundation of the Trefis methodology. The Trefis High Quality (HQ) Portfolio assesses the complete picture of quality across thousands of stocks, not just a single factor, retains the 30 strongest selections, and re-balances them with careful discipline. It possesses a track record of outperforming a benchmark that merges the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000.
Amazon plánuje v chicagském předměstí otevřít velkoprodejnu o rozloze 229 000 čtverečních stop, která bude zároveň sloužit jako mini-sklad pro rychlejší doručování. Firma tím chce posílit online prodeje i službu Amazon Now.
While Amazon (AMZN 3.38%) has achieved incredible success with its e-commerce business, forays into brick-and-mortar stores have proven to be a struggle. The company closed its Amazon Go and Amazon Fresh locations this year. So when reports surfaced of a massive 229,000-square-foot superstore in a Chicago suburb, this seemed like Amazon's latest attempt at throwing spaghetti at the wall to see what sticks.
That said, the project is not necessarily a doomed effort this time. Media attention has highlighted the e-commerce giant's attempt to outdo competitor Walmart's superstore concept, which typically runs 179,000 square feet. However, the new big-box retail location may serve a key purpose in helping Amazon cement its supremacy in online sales.
Image source: Amazon.
The advantage of Amazon's new superstore The new store is not just about a bigger emporium to sell more stuff. Part of the space will be dedicated to storing items. In essence, Amazon's new retail concept will also serve as a mini-warehouse.
This is a key element in the design. It gives Amazon a storage location closer to customer homes, providing greater flexibility for its massive logistics operations and enabling speedier shipping. These attributes are desirable because, as Amazon CEO Andy Jassy explains, "Despite many improvements over the years, customers always want lower costs and faster delivery speed."
The ability to accelerate shipping translates into more revenue. According to Jassy, "When we promise faster delivery times, customers complete purchases at a meaningfully higher rate and shop with us more frequently."
To that end, Amazon created a new streamlined warehouse format called Same-Day Fulfillment Centers. These facilities carry the top sellers, with the goal of delivering an item within the day it is ordered.
The company is also experimenting with an ultra-fast delivery service called Amazon Now, which aims to get items to customers within 20 minutes using micro-fulfillment centers. The service is only in select international markets, and in these countries, Amazon Now orders are increasing 25% month over month. Prime members triple their shopping frequency after they start using it.
The company is looking to expand Amazon Now in the U.S. and Europe. The new superstore could be part of this plan, serving as a micro-fulfillment center.
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Other benefits of Amazon's new retail store The company has extended its delivery capabilities to third-party sellers, meaning Amazon's new superstore concept could help them, too. Third-party sellers are a key component of the tech titan's sales growth. They contributed $41.6 billion of Amazon's $181.5 billion in first-quarter sales.
The company also offers shoppers the option to pick up their purchases from retail locations, such as its Whole Foods stores. Sending products to a central place rather than getting them to individual customer homes simplifies shipping for Amazon. The superstore can expand the retailer's pickup spots.
Of course, the new big-box location will generate its own income through product sales. The question is whether it can do so more successfully than the company's previous efforts. If the concept can produce sufficient sales and serve as a hub for faster deliveries, additional superstores are likely to extend into cities across the country. At that point, it can have a meaningful impact on Amazon's financials and potentially its stock price.
Amazon oznámil dodatečnou investici 13 miliard USD do Indie do roku 2030 na rozšíření AI a cloudové infrastruktury. Celkem tak v zemi plánuje investovat 48 miliard USD.
The Amazon logo is seen at its newly inaugurated office in Bengaluru, India, February 23, 2026, REUTERS/Priyanshu Singh Purchase Licensing Rights, opens new tab
June 25 (Reuters) - Amazon (AMZN.O), opens new tab said on Thursday it will invest an additional $13 billion by 2030 in India to expand its AI and cloud infrastructure.
The new investment is in addition to its planned $35 billion funding announced last year, taking the e-commerce firm's investment in the country to $48 billion through 2030.
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The announcement follows a meeting between Amazon CEO Andy Jassy and Indian Prime Minister Narendra Modi on Thursday in New Delhi.
"Shared that we're investing $48 billion over the coming five years, including $21+ billion in AI and cloud infrastructure," Jassy said in a post on social media platform X.
The $13 billion investment will support AI and cloud infrastructure across the Mumbai and Hyderabad regions, the company said in a statement.
Major U.S. tech firms have invested billions of dollars in India, underscoring the country's emergence as a strategic hub for cloud, AI and deep‑tech growth.
Microsoft (MSFT.O), opens new tab has pledged a $17.5 billion investment in India for AI and cloud infrastructure, while Google (GOOGL.O), opens new tab has committed $15 billion over the next five years to build AI data centers.
Reporting by Abinaya V and Akanksha Khushi in Bengaluru; Editing by Saumyadeb Chakrabarty
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Zoox představila přepracovaný robotaxi a chystá širší rozšíření v USA i zpoplatnění jízd později letos. Firma zároveň plánuje velkosériovou výrobu v oblasti Bay Area.
Amazon's Zoox unveiled the "next evolution" of its toaster-shaped self-driving vehicle on Wednesday, adding more rider-friendly features ahead of a wider U.S. rollout this year.
The company said it's equipping the vehicles with higher-quality touchscreens, more comfortable seats and headrests, and small interior tweaks that will make it easier for passengers to spot forgotten items like keys and phones.
Zoox is also enlarging and relocating the robotaxi's "bidirectional reflectors," which help riders and others such as law enforcement distinguish the vehicle's front from its rear, so that they're easier to spot.
The updates come as Zoox is plotting expansion in additional markets and preparing to charge for rides later this year. The company, which Amazon acquired for $1.3 billion in 2020, is way behind Alphabet's Waymo, the U.S. robotaxi leader.
Waymo recently surpassed 500,000 weekly paid rides across 10 U.S. cities. It also plans to bring commercial service to several new cities this year, including London and Tokyo, the first international markets. By comparison, Zoox said Wednesday it has served more than 500,000 riders since it opened service in Las Vegas last September.
Zoox currently offers free rides in parts of Las Vegas and San Francisco, and it's allowing select users to hail its robotaxis in small areas in Miami and Austin, Texas. It's also testing in six other U.S. cities.
In March, Zoox struck a partnership with Uber to make its robotaxis available through its ride-hailing app in Las Vegas, enabling it to reach a wider potential customer base.
The Zoox robotaxis have been nicknamed "toasters" due to their shape. The vehicles have no steering wheel or pedals, and feature four carriage-style seats that face inward, giving them a shuttle-like atmosphere.
Zoox's biggest hurdle remains launching a paid service. The company is awaiting approval from the National Highway Traffic Safety Administration to operate as many as 2,500 of its self-driving cars on public roads for commercial purposes.
Zoox's petition is currently under review by NHTSA after public comments closed in early April.
Zoox said Wednesday that the redesigned robotaxi is its "production intent vehicle," and the company expects to introduce the model to its existing fleet later this year.
The company added that it will soon begin large-scale production of its robotaxis at its manufacturing facility in the San Francisco Bay Area that opened last June. The facility will help Zoox grow its robotaxi fleet, eventually producing 10,000 vehicles a year once it's at full scale.
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Amazon klesá kvůli zprávě, že FTC připravila žalobu kvůli údajnému klamání inzerentů skrytým nastavením cenotvorby reklamy. Akcie jsou zhruba o více než 16 % pod historickým maximem z minulého měsíce.
Shares of Amazon.com NASDAQ: AMZN started this week on the back foot, trading down around $230, their lowest level since early April. The stock has been going through a tough patch and is now down more than 16% from the all-time high it hit last month.
Amazon.com Today
$240.00 +5.89 (+2.51%)
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52-Week Range$196.00▼
$278.56P/E Ratio28.75
Price Target$312.78
What makes the current pullback particularly worrying is the divergence from the rest of the market and the broader tech sector, with much of which has been holding on to most of its recent gains. When a stock starts trading out of sync with its peers, it usually tells you something specific is weighing on it.
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In Amazon's case, that something has just become a lot clearer. It was reported last week that the Federal Trade Commission (FTC) has drafted a potential complaint against the company, alleging it misled advertisers through hidden ad pricing practices, and the penalty could run into the billions.
This isn’t the first time that Amazon has run afoul of the FTC, and if recent history is anything to go by, investors are right to be worried. The question is how much?
What the FTC Is Actually Looking AtAt the heart of the investigation is whether Amazon properly disclosed the terms and pricing of its advertising auctions, particularly a feature called "reserve pricing" for certain search ads. In simple terms, that's the minimum price an advertiser has to accept before they're able to buy an ad. The argument is that Amazon didn't make these mechanics fully clear, leaving advertisers paying more than they otherwise might have.
It's worth noting that this isn't an entirely new line of inquiry. The FTC's consumer protection unit has been looking into whether both Amazon and Alphabet NASDAQ: GOOGL misled advertisers placing ads on their respective platforms for some time now. What's changed is that the investigation into Amazon has now reportedly progressed to the point where a formal complaint has been drafted, which is a meaningful step up the regulatory ladder, and this is clearly spooking investors.
Amazon Has Been Here BeforeWhat makes this story particularly relevant for Amazon’s investors is the recent history. Just last September, the FTC secured a historic $2.5 billion settlement against Amazon over allegations that it had enrolled millions of consumers in its Prime program without their consent and made it deliberately difficult for them to cancel. A settlement of that scale makes it very clear just what the FTC thinks it can extract when it sets its sights on Amazon.
For the latest investigation, it’s a useful reference point for thinking about the worst-case scenario. If the FTC was able to secure $2.5 billion in penalties and refunds for the Prime enrollment issue, the potential downside from a misleading-advertisers complaint could be similar, or even larger, given the size and complexity of Amazon's advertising business.
Even for a company of Amazon's scale, that would be a significant amount of money, and it’d come at a time when Amazon’s outgoings are already under the microscope.
A Worrying Near-Term SetupFrom that perspective, this update from the FTC couldn't really have come at a worse moment for Amazon's stock. As we've covered recently, the company has been grappling with a free cash flow squeeze from its enormous AI capital expenditure commitments, a high-profile Blue Origin rocket explosion that set back its satellite ambitions, and a broader cooling in sentiment across mega-cap tech. Adding regulatory uncertainty to that pile is the kind of thing that can keep a stock under pressure for longer than the underlying business deserves.
There’s also the risk that while an eventual settlement could come this summer, it could also just as easily turn into a drawn-out legal battle that dominates the headlines for many quarters to come. Neither of those is ideal for shareholders who have been waiting for the stock to find its footing.
The Long-Term Bull Case Hasn't ChangedOverall MarketRank™99th Percentile
Analyst RatingModerate Buy
Upside/Downside29.3% Upside
Short Interest LevelHealthy
Dividend StrengthWeak
News Sentiment0.99 Insider TradingSelling Shares
Proj. Earnings Growth29.96%
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Still, for those willing to look beyond the next few months, the long-term case for Amazon remains as strong as ever. AWS continues to grow at a remarkable pace and is increasingly central to the AI infrastructure buildout. The advertising business itself, the very thing now under scrutiny, is one of the fastest-growing high-margin revenue streams in the company. The deepening Anthropic relationship and the wave of analyst price targets sitting comfortably above $300 all speak to a long-term picture that an FTC complaint, even a multi-billion-dollar one, doesn't materially change.
The current weakness is uncomfortable, no question, and the near term could get worse before it gets better. But Amazon has a long history of absorbing regulatory blows and compounding value over time. For those willing to pinch their noses in the near term, this weakness could be a gift in the long term.
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Amazon rozšířil Bedrock o modely OpenAI a spravované agenty, aby podpořil firemní nasazení AI. V 1. čtvrtletí 2026 vzrostly výdaje zákazníků na Bedrock mezikvartálně o 170 % a platformu využívá více než 125 000 zákazníků.
Key Takeaways Amazon expanded Bedrock with OpenAI models and managed agents to support enterprise AI deployments.AMZN's Bedrock spending rose 170% sequentially in Q1 2026, serving 125,000 customers.Nearly 80% of Fortune 100 companies are leveraging Bedrock for AI initiatives. Amazon (AMZN - Free Report) continues to build out the Bedrock ecosystem as enterprises move from AI experimentation toward larger-scale deployments. As companies look to integrate generative AI into customer engagement, software development and business operations, Bedrock is positioned as one of the platforms within Amazon Web Services (AWS) supporting this transition.
The company's approach centers on offering enterprises model choice, scalable infrastructure and tools intended to simplify the deployment of AI applications. Additions to Bedrock, including OpenAI models and managed agent capabilities, have strengthened the platform's capacity to support a wider range of enterprise workloads. These additions are intended to help organizations build and deploy AI applications while addressing security, reliability and operational requirements at scale.
Customer adoption trends suggest that enterprise demand is strengthening. Bedrock customer spending increased 170% sequentially in the first quarter of 2026, while token processing volumes during the quarter exceeded the cumulative total from all prior years. The platform is being used by over 125,000 customers, with nearly 80% of Fortune 100 companies leveraging Bedrock. These figures suggest a shift from initial testing toward broader integration into business workflows for at least some enterprise customers.
The growing adoption of Bedrock is expected to have broader implications for AWS. As enterprises scale AI deployments, demand often extends beyond AI models to include compute, storage, databases and analytics services. This creates opportunities for AWS to benefit from both AI-related spending and the expanding consumption of its core cloud offerings. AWS revenues increased 28% year over year to $37.6 billion in the first quarter. As enterprise AI adoption continues to mature, Bedrock's expanding ecosystem is likely to remain an important catalyst for AWS growth and the broader enterprise AI landscape.
AMZN Faces Stiff CompetitionAmazon is competing aggressively with Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) for enterprise AI workloads. Microsoft has benefited from its close OpenAI relationship, integrating advanced models across Azure AI services and enterprise software offerings. Alphabet has been expanding Gemini and Vertex AI to help enterprises build and deploy AI applications on Google Cloud.
While Microsoft and Alphabet emphasize proprietary model ecosystems, Amazon's Bedrock strategy is centered on offering enterprises access to multiple leading foundation models through a single managed platform. This model choice, combined with AWS' broad cloud infrastructure portfolio, could help Amazon attract organizations seeking flexibility as enterprise AI adoption moves from experimentation to large-scale production deployments.
AMZN’s Share Price Performance, Valuation & EstimatesAmazon shares have jumped 1.4% in the year to date (YTD) period compared with the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s decline of 6.3% and 2.3%, respectively.
AMZN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AMZN stock appears overvalued, trading at a forward 12-month price/earnings ratio of 24.88X, higher than the industry’s 20.71X. Amazon has a Value Score of D.
AMZN’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AMZN’s 2026 earnings is pegged at $8.85 per share, indicating a 23.43% increase from the figure reported in the year-ago quarter.
Amazon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon dál roste díky AWS, reklamě a předplatnému; v 1. čtvrtletí 2026 tržby AWS vzrostly o 28 % na 37,59 miliardy USD a EPS činil 2,78 USD, čímž překonal odhad 1,653 USD.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) is a stock worth owning for the next two decades because three high-margin engines, AWS, advertising, and Prime subscriptions, now compound on top of a retail base that has finally turned profitable. Amazon is an infrastructure-grade holding built to outlast tariff headlines, quarterly free cash flow noise, and even its owner.
Pillar One: Durability Anchored in Three Cash Engines Forget the razor-thin margins on the e-commerce storefront. The true forever story rests on AWS, enterprise advertising, and subscription services, and the latest filings show why. AWS generated $37.59 billion in Q1 2026 revenue at a 37.7% operating margin, growing 28% year over year, its fastest pace in 15 quarters, on a $150 billion annualized run rate. Advertising hit $17.24 billion in the quarter and over $70 billion in trailing twelve-month revenue. Subscription services added $13.43 billion, up 15%. AWS controls roughly a third of the global cloud infrastructure market, and an AWS backlog of $364 billion, before the $100 billion-plus Anthropic commitment, gives the cash engine years of pre-sold work.
Pillar Two: Compounding Without a Dividend Amazon pays no dividend, so income-focused retirees should size accordingly. The compounding instead happens through reinvestment at a 24.3% return on equity. Operating cash flow climbed from $38.5 billion in 2019 to a record $139.5 billion in 2025. Evaluated on its price-to-operating-cash-flow multiple, Amazon screens as an underpriced utility for the modern economy. Earnings power is following: Q1 2026 EPS came in at $2.78 versus a $1.653 estimate, the fifth consecutive quarter beating Wall Street’s bar.
Pillar Three: Built to Survive Cycles Forever holdings need balance sheet armor. Amazon ended Q1 2026 with $101.82 billion in cash, $441.91 billion in shareholder equity, a debt-to-equity ratio of 0.37, and interest coverage of 35x. Even in the 2022 trough, when net income flipped to a $2.7 billion loss, the business still produced $46.8 billion in operating cash flow. Prime is a sticky subscription, AWS contracts are multi-year, and ads run through downturns. That mix is what a retiree wants on autopilot.
The Scenario Where It Lags Amazon will underperform during stretches when the market rewards capital returns over reinvestment. Management plans roughly $200 billion in 2026 capital expenditures, and trailing free cash flow has already compressed to $1.2 billion. If dividend-paying mega-caps lead the tape for a year or two, AMZN will lag. That does not change the thesis. As CEO Andy Jassy put it, “We have been through this cycle with the first big AWS growth wave, and we like the results.” Those data centers, chips, and satellites become the next decade’s cash flow.
With 62 analysts at Buy or Strong Buy and a $312.99 consensus target against a $244.39 share price, the near-term setup is fine, but that is not the point. Amazon’s profile fits a long-duration compounder framework.
Amazon staví Prime Day na funkci Alexa for Shopping, která má personalizovat nabídky, sledovat ceny a při dosažení cílové ceny i automaticky nakupovat. Bank of America čeká tržby ve výši 21,6 miliardy USD, tedy jen o 5 % více než loni.
Amazon is putting Alexa for Shopping at the center of Prime Day, using artificial intelligence (AI) to build personalized deal guides, track prices, recommend products and place orders automatically when items hit a shopper’s target price. The four-day event runs Tuesday to Friday (June 23-26), and the stakes are high.
According to a Monday (June 22) Reuters report, Bank of America expects the event to generate $21.6 billion in sales, up just 5% from 2025—leaving Amazon little room for the technology to underperform.
Amazon moved the event from July and is leaning harder into selling groceries, household goods, travel items and back-to-school purchases. eMarketer expects Amazon to capture more than 60% of sales during the event, according to Reuters, even as Walmart and Target run competing promotions.
Alexa for Shopping changes where the buying decision starts. Instead of asking shoppers to scroll through product pages and compare deals themselves, Amazon can use their shopping history and stated preferences to narrow the options before they reach the cart.
Amazon said in a June 16 post that the tool can build a personalized Prime Day Deals Guide, explain why each item was selected and send alerts when a matching deal appears. Shoppers can also check price history, set a target price and let Alexa complete the purchase when that price is reached. That puts Amazon’s AI inside discovery, comparison and checkout.
PYMNTS Intelligence found that 47% of online shoppers used AI during their latest purchase. ChatGPT’s share as a product research tool rose from 2% to 30% in two years, the data shows. Retailers now have to compete for the recommendation before a shopper reaches a product page.
Prime Day gives Amazon a closed-loop test. The company owns the product data, customer history, pricing, checkout and fulfillment. It can see whether an AI recommendation ends in a purchase.
Amazon Uses Alexa to Squeeze More Spending From Existing Prime Members Prime Day has long helped Amazon add Prime members and train them to spend more often. That membership funnel is getting harder to expand in the United States.
Last year, Amazon added 3.9 million members in the three weeks before Prime Day 2025, down 185,000 from the prior year and about 193,000 below its goal, according to Reuters. However, the company brought in 1.6 million U.S. Prime members during the last year’s event, beating its internal target.
Amazon is also widening the purchases Prime Day is built to capture. The company said in its post that this year’s event includes deals on pantry goods, pet supplies and household products alongside electronics. Those categories can support repeat orders instead of one large purchase.
Prime Day Tests AI Recommendations and Auto-Buy at Scale The commercial case depends on whether the tools work under live retail conditions. Prime Day compresses millions of deals, frequent price changes and time-sensitive buying into a 96-hour window.
The annual event is a stress test for AI-assisted commerce at scale. Millions of shoppers making time-sensitive decisions simultaneously is a real load, and the auto-buy feature concentrates the risk: once a shopper grants permission, the system can charge their default payment method and ship to their address the moment a tracked item hits a target price—no additional confirmation required. For that to work, alerts have to arrive while inventory is still available, and the system has to honor the price and product rules each shopper sets.
The last step carries a higher bar than product discovery. PYMNTS reported last week that consumers are more comfortable using AI for recommendations and comparison shopping than for payments and other final decisions. Shoppers still want more control when software moves from advice to spending.
Amazon’s design keeps several approval levels in place. Shoppers can use Alexa to build a guide, watch a product or authorize an automatic purchase at a set price. Prime Day will put all three uses into the same sales event.
In May, Amazon Web Services announced the AWS Agentic Shopping Assistant, built on the same underlying technology as Alexa for Shopping and designed to let third-party retailers deploy comparable tools on their own sites.
That move reframes what Prime Day is actually testing. If Alexa for Shopping performs—if AI recommendations convert, price alerts trigger purchases and auto-buy runs without errors—Amazon will have a proof of concept it can sell to every retailer that runs on AWS.
The real stakes aren’t based on Prime Day’s success itself. Instead, they hinge on who controls the infrastructure layer of AI-assisted commerce once the event ends.
