The dude has been an abject failure, completely fumbling AI. The effects of this will begin to appear over the next 1-2 years when AWS will start falling behind on AI investments from their customers.
He has been at the company for almost 5 years and the stock is up less than 50% in 5 years when SPY is up 85% during this time.
Bezos fucked up by passing the torch to a bean counting, cost cutting MBA CEO during one of the most transformative, capex heavy tech waves in decades.
And the company is crumbling from the inside. Amazon’s compensation is significantly lower than its big tech peers (thanks to the dead stock) and it’s bleeding top talent left and right. This impact will begin to show in a year when new investments in AWS from customers slow down compared to Google cloud. This is what happened to intel in the mid 2010s, their stock started massively underperforming Apple, NVIDIA, Qualcomm etc and top talent left in droves, making the company completely uncompetitive in 5 years.
Edit: to the people saying “trust the plan”, they fired their top AI guy last week. The man responsible for Amazon’s AI strategy. Not exactly reassuring.
And bezos is launching an independent AI company, outside of Amazon. With him as the CEO. Now why would he do that if Amazon’s internal efforts were going well? After all, that internal team would have the full resources of Amazon at their disposal. Looks like even bezos realises it’s impossible to build a fast moving AI company inside Amazon with all of its bureaucracy and layers and layers of dimwit middle management.
Jassy is Amazon’s balmer. He is going to fumble AI like balmer fumbled smartphone wave at Microsoft
They better hope their robotics initiatives work well. They have to improve profitability of their e-commerce side because they are not going to be leading cloud in 5 years. And AWS accounts for 70% of their net income as of now.
How long will wallstreet make excuses for Andy Jassy
byu/kadam_ss instocks
Posted by kadam_ss
23 Comments
that or it’ll turn out AI is over hyped and Jassy sparred AMZN from taking on a but load of debt for a niche tool that’ll mostly be used by creatives, engineers, and analysts.
edit: and even if it isn’t and the bull cases for it are true there’s plenty of providers they could partner with like Perplexity that can take on the cost of build out for them.
AWS is powering most AI services right now. Them being conservative about it isn’t a bad thing, either, considering this is going to falter soon and the hyperscalers are going to be left holding a shit ton of compute that they’ll have to start deeply discounting.
AI investments right now are a disaster waiting to happen.
it will have it’s google moment next year
People were saying this about Sundar exactly one year ago
Andy Jassy is not a bean counting MBA, the dude spear headed AWS and effectively the whole idea of the cloud as a service.
Agree with your whole comment but that part of the statement is just wrong
If the problem is Jassy’s cost cutting, how do you explain Amazon’s huge capex expenditure then? Also, how do you explain the company’s significant increase in net op income and revenue during his time? Isn’t it possible that the underperformance is because the was overvalued during COVID?
Net Income TTM on period ending Sep 30, 2021 (Jassy’s first quarter as CEO): $26,263 million
Net Income TTM on period ending Sep 30, 2025 (most recent quarter): $76,482 million
Basically tripled in four years.
This is a CEO who has the business firing on all cylinders and growing the business in a sustainable manner, which will eventually reward shareholders, not a hype man who promises the moon and the stars. Unfortunate if you bought AMZN when it was overvalued though.
Tbh Amazon is investing big time in AI, but as you observed due to arguably poor culture in the company and lower comp, the best talent has left. I don’t see Amazon leading the AI space in the coming period. And yes, the buck stops with Jassy and it beats me why he is not being removed
I have nothing to add, but genuinely wish there were more discussions like this on investing subs instead of asking what stonks will moon next.
Steve Balmer got 14 years at Microsoft
Relax. Amazon just reported 187 BILLION in revenue last quarter. If they can improve their margins even by increments, their profitability will soar. Automation, AI adoption, and the spread of self driving are much closer than you think and AWS is going to benefit immensely from AI workloads.
Jassy has been absolute trash
They’re large owners and compute partners to Anthropic. They don’t have the same weird non-profit problems OpenAI has. They’re growing quicker too. Amazon’s Trainium is the only viable ASIC competition to TPUs over the near/medium term. Amazon doesn’t need to have a leading lab, they can make bank offering AI cloud services and lean into robotics/automation for margin expansion. Their robotaxi Zoox is giving rides in Vegas already and they’re expanding to healthcare and pharmacy.
Their multiple is relatively low at the moment but they’re accelerating growth. 2026 is Amazon’s year.
lol “AI” is vaporware. LLMs are not AI. Amazon is the Walmart of big tech and will never dominate AI in any fashion.
This post focuses too much on the stock price which is essentially just speculation and sentiment and too little on Amazon’s fundamentals which are still strong.
I don’t judge CEOs by how much they can pump the stock but whether they are making the right calls on the long term viability of the business. AWS is still the cloud leader. Amazon is still dominating e-commerce and they are expanding into robotics, space and data centers to meet their cloud demand.
It’s not jassey selling a bazillion shares like the besos
So you don’t understand what AWS *or* AI are, is what I’m actually hearing from this. It’s just a buzzword to you.
Amazon is failing in the AI front how? The only thing hurting Amazon is Jeff and Mackenzie selling stock nonstop.
Worked at Amazon for 6 years. He’s boring but it’s a bad take. Amazon’s value with AI is not a consumer facing product; it’s actually real. They can implement AI on the cost side and see a ton of return (ex. load balancing across data centers for web hosting and traffic demand), but consumers don’t see any of this.
Amazon is also deep into robotics + AI. Ya they could improve Rufus but nobody will care about chat bots in 5 years. Investors will definitely care if the retail business margins suddenly start to match AWS because labor cost is minimal.
Include most SDEs in that too (thats why you’re saying salaries are lower; they don’t have to provide as much incentive because they know their roadmap). Eventually you’ll have one principal SDE managing 10-20 agents. Eating a low salary right now = some idea of job security later (hopefully).
Toss in massive increases in online grocery traffic/revenue, covering nearly 90% of the US population with sub-same day delivery, and a pharmacy business that’s basically 1 day old, there’s a lot to bite off. Zoox also is doing autonomous taxi rides in SF and Austin. Kuiper revenue.
It’s one of the few companies that can actually use AI right now for real and they’re not trying to copy chat gpt. Retail margins through autonomous robotics is their goal.
Knowing the culture inside, it blows for employees but man they get shit done. As an employee it was terrible, but as an investor it was kind of refreshing. They don’t fucking waste a dollar.
(Also flipped to Walmart+ since it was free and moved back to Prime in like a week. Amazons selection + speed is unmatched and honestly taken for granted)
Amazon culture is partly to blame. The company is a revolving door with talent cycling in and out with an average tenure of maybe 2 years. A majority of the talent have joined other tech/ai companies and it is showing. Amazon doesn’t care about talent retention and when the top performers had opportunities to leave, they jumped on it, and now you’re left with your mediocre to low performers guiding the ship. Amazon isn’t what it was.
The core issue is that Amazon is a cyclical retail e-commerce company and not a pure technology company. That means they have to deal with things like: tariffs, customer returns, transportation expenses, and warehouse construction.
AWS would be better off as a completely separate company. As long as it is the same company, nobody should be expecting the gains that a pure tech company would have.
while Amazon’s AWS business and existence as a “tech” company fails to buy wall street hype, I am a big fan of how Jassy has handled the retail side, which is Amazon’s core business.
Amazon has positioned itself in a way where it could be a future multimedia conglomerate as it’s expansion into the most lucrative media form, live sports, has been one of the best executed in terms of adding an new sector while also benefitting their existing one.
Amazon prime being associated with football in the fall is brilliant. This is when consumer spending typically rises, and by incentivizing users to obtain their premium delivery service during the best retail season, Amazon has locked in their position in the retail space to dominate.
They then inked a deal with the NBA, therefore encouraging a longer lock in with the prime service for consumers. They’ve found an incredible effective way to increase their subscription model in a sector of retail that is hard to crack, male spending.
They’re doing full end to end supply chain control in the retail space, starting with the planting of seeds in advertising and then executing off those ideas on the spot with premium advertising models that encourage consumer spending through convenience. You can buy an advertised product on the spot inside of a prime Commercial.
The quiet story is how new tech conglomerates are stealing away share in media. Netflix is ground 0, but Apple, Google, and Amazon have all made significant headway. I think Amazon and Google have the most enticing products on the market and both are positioned to force classic media to bow down to them. In Amazon’s case there is a huge benefit due to their retail business.
Amazon survived and thrived after the dotcom bubble, pretty sure it’ll do the same with the AI bubble