This Business Could Supercharge Amazon's Growth, and It Is Not AI
Amazon (NASDAQ: AMZN) has been in the news for the wrong reasons lately. The technology giant laid off employees as it tries to navigate through a tough demand environment that has led to a recent sharp slowdown in its growth. The e-commerce and cloud computing giant's 2022 revenue increased just 9% to $514 billion, which was a substantial slowdown over 2021's full-year revenue growth of 22%. What's more, Amazon swung to a net loss of $2.7 billion last year from a profit of $33.4 billion in 2021.
While it's clear there were justifications for downsizing its workforce, it was somewhat surprising that job cuts were even seen in the relatively fast-growing Amazon Web Services (AWS) cloud computing business. There are still hopes this segment could win big from the growth in the adoption of generative artificial intelligence (AI) applications, which have generated a lot of hype recently.
Even with the cuts elsewhere, there is another area where Amazon is busy expanding -- Fire TV. Let's see why growing this segment of its business could be a smart move.
Source Fool.com
