Amazon Should Recover Fast Whe

Amazon(AMZN, Financial) charts a path to recovery that includes diversification, cost savings and strategic partnerships during this difficult time. To bounce back from a slowing economy and high inflation, Amazon has taken extreme measures, including cutting staff and curtailing certain projects.

On the positive side, Prime Video appears to be rolling out its own sports streaming application for those looking for an easy way to access their favorite teams and competitions. Amazon Web Services is also performing very well, which could boost the company’s bottom line even further and help stabilize the low-margin e-commerce business during this uncertain time.

Despite the market’s unpredictability in today’s environment, I believe Amazon stands out as an attractive stock.

Amazon aims to further diversify revenue

On January 5th, Amazon announced the launch of its highly anticipated security dashboard camera, the Ring Car Cam, at the 2023 Consumer Electronics Show. The device is a staple of Ring, which was acquired by Amazon several years ago. It is equipped with a motion detector that records the scenery inside and outside the vehicle and warns of disturbances. On the same day, the company reported his partnership in the electric vehicle industry with EVgo (EVGO, finance). Electric vehicle drivers can use Amazon’s Alexa app to find electric vehicle charging stations and use the app to perform other functions.

Amazon continued its status as a tech giant by introducing Prime Air, a drone delivery service, in parts of California and Texas in late December. Valued at $8.2 billion in 2021, the drone delivery market will grow at a CAGR of 20.8% from 2022 to 2031, according to a report by Allied Market Research, which will be worth $53.3 billion by 2031. It could reach $20 million.

Amazon is one of the few companies to have the Part 135 certification required to operate drone deliveries. An early entry into the package delivery market for drones is likely to be of great benefit to the company.

Amazon’s cost-cutting plan should ease investor fears

Some might think Amazon’s wave of layoffs is a sign of weakness: Amazon plans to lay off 18,000 employees starting Jan. 18 of the economy. This figure is significantly higher than the previous figure of 10,000 job cuts announced in November 2022. This step is his one of many steps the retail giant has taken to cut the huge losses it has experienced since the end of 2021. A necessary job cut step in an economic slowdown, layoffs ultimately improve a company’s profit margins.

To contain losses, the company has also subleased, closed, or shut down dozens of warehouses. In addition, it closed Amazon Care, a joint venture with Berkshire Hathaway (BRK.A, Finance) (BRK.B, Financial) and JP Morgan Chase (JPM, finance). Halting projects like this means the company is serious about cutting costs.

Amazon has started selling extra cargo space on Prime Air. In December 2022, the company hired experts to help sell the extra space and attract customers. In addition, the company plans to import materials using air flights. For example, cargo jets from Hawaii, Alaska, and New Zealand can import flowers, pineapples, salmon, and more. In addition, Amazon is the Air Transport Services Group (ATSG, finance).

Amazon’s new sports app is expected to boost Prime ecosystem

Amazon has always been a leader in the e-commerce industry, but its Prime ecosystem has now grown beyond just e-commerce. This strategy is a key factor in the company’s success in growing Prime’s subscriber base to over 200 million.

To further expand Prime’s already dominant presence, Amazon is reportedly planning to introduce an app that streams sports content. England. This new venture has proved to be very popular and will undoubtedly add another layer of success to Amazon’s global success story.

Amazon Web Services continues to win lucrative deals

Amazon Web Services is the undisputed leader in the cloud computing market, accounting for 100% of Amazon’s operating profit in Q3 2022. The recent success of winning two major government contracts further confirms this impressive feat.

On December 19, 2022, AWS won a five-year U.S. Navy contract worth $723 million. Two weeks before that, AWS had won part of his $9 billion contract for the Joint Warfare Cloud Capabilities (JWCC) project by the Department of Defense. AWS has proven to be an innovative and reliable force in cloud computing.


The last few years have been difficult for Amazon. Still, the big company is no stranger to disruption and continues to pursue cost-cutting initiatives and smart investments that will strengthen it in the future.

Speculation is swirling as to when the company will start making steady profits again. Personally, I think the first half of the year may still be slow, but Amazon is still a viable long-term play. A recovery is unlikely to begin before mid-2023, but Amazon should have another chance to shine once the economy picks up and inflation slows.

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