Amazon's Upcoming Results to Reveal AI Success, Devices Division's Profitability
Amazon's upcoming quarterly results will shed light on the success of its AI offensive, while the Devices division continues to grapple with profitability. Meanwhile, a high-ranking manager, Rob Williams, is leaving the Devices division, raising strategic questions.
Jeff Bezos has expressed skepticism about the current AI hype, despite Amazon's heavy investment in AI-powered Alexa technology. However, Goldman Sachs has given Amazon a buy recommendation, expecting strong growth potential in Amazon Web Services (AWS) and revenue growth of over 20% in the second half of 2025.
Douglas Herrington, head of Amazon's retail business, recently sold 2,500 shares at an average price of $217.10 as part of a trading plan set up in November 2024. This move comes amidst Amazon's realignment of its AI strategy and the presentation of new hardware and AI assistants.
Rob Williams, a member of Amazon's 'S-Team', is leaving the Devices division. His departure is rare and comes at a time when Amazon is integrating hardware and content services more closely. Tapas Roy, with experience from the Fire-TV division, will succeed Williams. Analysts from Morgan Stanley and Finanztrends recommend a buy due to strong AI initiatives around Alexa+, positive cloud trends, and expected good upcoming quarterly results.
Amazon's quarterly results will provide clarity on the success of its AI offensive and the profitability of the Devices division. Meanwhile, the departure of Rob Williams and the strategic realignment of Amazon's AI division raise questions about the future of the loss-making Devices division. Despite these changes, Amazon's strong growth potential in AWS and positive analyst recommendations encourage shareholders to remain optimistic.
