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🔴 078. Ai: Amazon's Big Money Moves and Tariffs
Join Us | Newsletter : https://buymeacoffee.com/marlonbonajos/membership
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Description:
So, the sources talk about what Amazon has been up to lately, specifically around the beginning of 2025.
Think of it like their report card for that time.
- Good News First: Amazon actually made more money than expected in the first few months of 2025!. They did really well with their online store and especially with their advertising business, which grew a lot.
- Big Spending Plans: Amazon is planning to spend a HUGE amount of money – $100 billion – mostly in 2025. Where is all that money going? Almost all of it is for AI, which stands for Artificial Intelligence. AI is like making computers smart enough to do things that usually need human thinking. Amazon thinks AI is a "once-in-a-lifetime opportunity". They are spending a lot to build data centers (which are buildings full of computers) for their cloud business called AWS. This is to keep up with and get ahead in the AI race against companies like Microsoft and Google.
- Problems: Now for the not-so-great news. There are these things called tariffs, which are basically extra taxes on goods coming from other countries, especially China. These tariffs are getting higher and make it more expensive for some sellers on Amazon, who might have to raise their prices. This could hurt Amazon's retail business. Amazon thought about adding an extra fee for these tariff costs on some cheaper products but hasn't done it yet.
- Handling the Problems: Even with the tariff problems, Amazon is trying to keep prices low. They think their low prices could actually help them if other stores have to raise their prices because of tariffs. Also, that growing advertising money helps balance out the tough parts in the retail business.
So, Amazon is making good money and is betting big on AI for the future with a ton of investment, but they are also facing challenges from rising tariffs. It's a bit uncertain how it will all play out
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By Marlon BonajosJoin Us | Newsletter : https://buymeacoffee.com/marlonbonajos/membership
Try this | 7 Days Challenge : https://tinyurl.com/7-Days-Challenge
Description:
So, the sources talk about what Amazon has been up to lately, specifically around the beginning of 2025.
Think of it like their report card for that time.
- Good News First: Amazon actually made more money than expected in the first few months of 2025!. They did really well with their online store and especially with their advertising business, which grew a lot.
- Big Spending Plans: Amazon is planning to spend a HUGE amount of money – $100 billion – mostly in 2025. Where is all that money going? Almost all of it is for AI, which stands for Artificial Intelligence. AI is like making computers smart enough to do things that usually need human thinking. Amazon thinks AI is a "once-in-a-lifetime opportunity". They are spending a lot to build data centers (which are buildings full of computers) for their cloud business called AWS. This is to keep up with and get ahead in the AI race against companies like Microsoft and Google.
- Problems: Now for the not-so-great news. There are these things called tariffs, which are basically extra taxes on goods coming from other countries, especially China. These tariffs are getting higher and make it more expensive for some sellers on Amazon, who might have to raise their prices. This could hurt Amazon's retail business. Amazon thought about adding an extra fee for these tariff costs on some cheaper products but hasn't done it yet.
- Handling the Problems: Even with the tariff problems, Amazon is trying to keep prices low. They think their low prices could actually help them if other stores have to raise their prices because of tariffs. Also, that growing advertising money helps balance out the tough parts in the retail business.
So, Amazon is making good money and is betting big on AI for the future with a ton of investment, but they are also facing challenges from rising tariffs. It's a bit uncertain how it will all play out