Amazon (AMZN) reported better-than-expected third quarter results and delivered strong guidance. CFRA Research senior equity research analyst Arun Sundaram joins Market Domination Overtime Hosts Alexandra Canal and Josh Lipton to discuss the results and break down why the market is less concerned with Amazon’s artificial intelligence (AI) spending compared to its peers. “Really, you got the you got the ingredients you needed for the stock to go up,” Sundaram says. The analyst explains that while all the cloud hyperscalers are ramping up their capital spending to invest in AI, investors seem less concerned about Amazon’s AI spending compared to Meta (META) and Microsoft (MSFT). He says, “There’s a few unique things” with Amazon,” including “Amazon’s not solely reliant on chips from Nvidia” as “ they also build and create their own AI chips that are more cost-effective and of more value. So they may not be seeing the same type of capacity constraint issues that Microsoft is seeing at the moment.” Sundaram notes, “The other thing I would point out too is, you know, Amazon has multiple levers to grow margins,” including their e-commerce business, advertising, Amazon Web Services, and other segments.
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