Amazon CEO confident on delivery upside ahead of Prime Day
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Amazon (NASDAQ:AMZN) is delivering packages faster than ever, which is helping convert customers, Chief Executive Officer Andy Jassy said in a wide-ranging interview on CNBC.
Jassy also noted that there are "very strong" cloud providers in China amid regulation being proposed that would limit U.S. companies from accessing that market, adding that AWS would not be spun out of Amazon (AMZN). On the heels of news that Jassy is delving into the budgets of the company's biggest shows, Jassy assured he was "very bullish"with where Prime Video is headed.
He added that more and more customers are joining Prime because of video first and then start using the shipping benefit.
This year should see Amazon's (AMZN) fastest deliveries on record, even amid a possible UPS (UPS) strike threat and widening inflation.
"Over and over again we learn that when we make a faster promise on a product detail page, customers convert at a higher rate," Jassy said.
Regarding AI, Jassy cited Amazon Bedrock, a service that makes foundation models from AI startups and Amazon (AMZN) available via an API allowing users to find the best model for them. The company also appears to be working on further AI projects.
"We tend not to be big hand waivers," Jassy said. "We have a lot more coming. We have a giant investment there."
Jassy spoke a week before the company's Prime Day event scheduled for July 11 and 12. Analysts think Amazon Prime Day will be a significant test of consumer discretionary spending ahead of the back-to-school and holiday season in the back half of the year. Jassy mentioned on CNBC that people are still shopping, but hunting for better discounts.
Of 53 Wall Street analysts who cover the stock, 34 say it's a Strong Buy and 16 say it's a buy. Among 25 Seeking Alpha analysts, 3 call it a Strong Buy and 13 call it a Buy.
Amazon (AMZN) closed down more than 1.5% today.
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