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Amazon Stock Hits 52-Week Intraday High
Amazon’s stock surged to $187.29 per share on Monday, reaching a 52-week intraday high, sparking speculation that the e-commerce titan could be on track to achieve a new record close. Despite this initial surge, the stock eventually settled at $185.19 per share, just marginally above its previous record closing value of $186.57 per share back in July 2021.
Amazon’s Investment in Artificial Intelligence
The surge in Amazon’s stock price coincides with the company’s significant investments in generative artificial intelligence (AI) and cost-reduction efforts such as recent layoffs within its Amazon Web Services cloud division. Amazon’s stock, which previously lagged behind its tech competitors, has witnessed a remarkable uptick of over 23% year-to-date and an impressive 81% surge over the last 12 months.
Enhanced Price Target Projection
Morgan Stanley analyst Brian Nowak has raised his price target on Amazon’s stock from $200 to $215 per share, reflecting a bullish outlook on the e-commerce giant’s prospects moving forward.
Amazon’s Strategic AI Focus
Aligned with other tech titans like Apple, Microsoft, and Google’s parent company Alphabet, Amazon is actively engaged in harnessing AI technology to drive business growth. In a recent move, Amazon allocated an additional $2.75 billion investment in Anthropic, a San Francisco-based AI startup, bringing its total investment in the company to a staggering $4 billion.
Layoffs in Amazon Web Services Division
In a bid to streamline costs and bolster operational efficiency, Amazon initiated a round of layoffs within its Amazon Web Services (AWS) division. The reasons behind this decision were attributed to sluggish sales growth over recent quarters, prompting the need for restructuring measures.
Implications on Amazon’s Workforce and Profits
Over the past two years, nearly 30,000 employees have been laid off across various Amazon divisions. Despite this, Amazon’s overall profits have surged, as evidenced by its latest earnings report exceeding expectations. The report highlighted a remarkable revenue figure of $170 billion coupled with an earnings per share of $1.
Recent Technological Developments
Looking ahead, Tesla is poised to unveil a self-driving vehicle, as promised by Elon Musk. Furthermore, Spotify’s new AI playlist tool dubbed ‘Spotify’s ChatGPT’ has garnered significant interest. Additionally, upcoming tech IPOs such as Ibotta and Microsoft-backed Rubrik are generating buzz in the market, offering potential investment opportunities.
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