Amazon may be lagging behind its peers in artificial intelligence, but the name remains investor Ray Wang’s favorite among the “Big Seven” of giant tech giants. The chief analyst and founder of Constellation Research pointed to Amazon’s advertising revenue as a catalyst, which he said is still growing at an annual rate of 20%. Wang said on CNBC’s “Money Movers” Monday morning that such growth would allow the company to soon match Google’s ad revenue numbers. What’s more, the massive Amazon Web Services cloud services business effectively gives Amazon leeway to find the best path forward for applying artificial intelligence to its other businesses. At the same time, Amazon’s Prime Video platform has become a powerful rival to Netflix. Wang also said Amazon’s Prime membership numbers may benefit from the upcoming holiday shopping season. Despite these tailwinds, Wang acknowledged that Amazon faces a big hurdle: It currently lags behind its peers in artificial intelligence capabilities. But Wang believes Amazon’s latecomer status ultimately won’t do much harm to its potential. “The good thing is, they’ve done a huge capex investment in data centers, and Microsoft has a huge capex investment to do, and Google has to play catch-up. So Amazon has a little bit of time to get there.” Their AI story is correct,” he said. Wang added that investors can expect to learn more about Amazon’s investment at its re:Invent conference in December.
Why This ‘Mag 7’ Stock Is Still a Buy Even though It Lags on Artificial Intelligence | Real Time Headlines
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