Andy Jassy demonstrated to shareholders his economical efforts are starting to pay-off. The business revealed its most noteworthy earnings surpass ever since late 2020. Jassy has been aggressively trimming costs through job reductions and abandoning ventures which lack proof of success.
Jeff Bezos famously maintained that customers should always take precedence over Wall Street's focus on earnings. His successor, Andy Jassy, has been pressured by investors to make profitability a priority, and his efforts have been rewarded. Amazon reported stellar figures on Thursday, posting profits of 65 cents a share, far exceeding the expected 35 cents a share. This exceeded the huge double-digit earnings beat they reported in the fourth quarter of 2020 under Bezos. Despite slowing sales and a difficult economy, Amazon has become leaner under Jassy. Corporate hiring has been frozen and 27,000 jobs eliminated in order to appease investors after the company's stock suffered a 50% decline in 2022. Jassy's remarks in Thursday's earnings call emphasized cost-cutting improvements and he managed to expand Amazon's overall margin while reducing the profit margin of their Amazon Web Services cloud business. As the business slows, Amazon is finding more solutions for customers to use their services cheaply. Additionally, Jassy believes that artificial intelligence will continue to drive cloud business adoption. The success of this will likely require Amazon to increase capital expenditures for AI initiatives.
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