Amazon (NASDAQ:AMZN) is forging forward beyond its e-commerce hegemony, into the future, with the help of artificial intelligence (AI) and a variety of income sources, all while creating an image of unyielding economic strength.
Amazon Web Services (AWS), Amazon’s cloud computing branch, has been the company’s cash cow beyond its digital shelves, providing an astounding 70% of Amazon’s total operating earnings and posting record sales of $22.1 billion.
At the same time, Amazon’s $4 billion investment in its collaboration with Anthropic, an AI safety and research organisation, will catapult the company’s AI-centric strategy onto the world stage and fortify the company’s cloud offering.
With an attractive sales prediction of $138 billion to $143 billion for the next quarter, this alliance is anticipated to create an Alexa-integrated ChatGPT competitor by fusing speech technology and AI. The plan to hire 250,000 more people to handle the Christmas rush is also indicative of upbeat expectations. With almost $12 billion in sales on the last Prime Day, a huge windfall in income and earnings is likely.
Despite a disconcerting mid-year stock price lingering around $300, Meta Platforms (NASDAQ:META) has strategic strength in augmented reality/virtual reality and a bold entry into artificial intelligence, pointing to significant growth ahead.
In addition, with the release of Llama and its successor, Llama 2, it has made tentative steps towards OpenAI’s ChatGPT domain with the introduction of its robust large-language model. In addition, the Connect 2023 event sparkled with the unveiling of the Quest 3 VR headset and a partnership with Ray-Ban smart glasses, all of which bode well for the company’s future.
Ad sales increased by 11% year over year to a hefty $31.5 billion in the second quarter, and the company has a strategically diversified income stream emerging from several platforms like Facebook, Instagram, and WhatsApp, so its financials remain spotless.
Meanwhile, experts are looking forward and seeing a promising trend in advertising budgets. Particularly, Morgan…