Amazon Stock Is Delivering For Investors Thursday: What's Going On?

Amazon.com Inc AMZN shares are trading higher Thursday on the heels of the company's annual shareholder letter in which CEO Andy Jassy addressed continued investment in growth areas, cost control measures and the importance of generative AI.

What To Know: Despite being up against a difficult macro environment in 2022, Amazon still saw increased demand. The company focused on innovation and made adjustments to its investments, Jassy said. 

"Change is always around the corner. Sometimes, you proactively invite it in, and sometimes it just comes a-knocking. But, when you see it’s coming, you have to embrace it," he said in the annual letter to shareholders. 

Amazon remains committed to investing in chip development, advertising and even artificial intelligence, but it's still an e-commerce company. Jassy highlighted several changes the company has made that are expected to significantly improve fulfillment costs and delivery speed.

The company did a deep dive into its business segments in recent months to make sure conviction remained about the long-term potential of its different businesses. It cut where it needed to cut and it's expanding into areas that can help improve efficiency and growth. 

The Amazon CEO highlighted the company's use of generative AI for improving the customer experience. AI and large language models (LLMs) will be key to setting Amazon up to invent in every area of its business for many decades to come, Jassy said. 

Related Link: Jassy Addresses Cost-Cutting, Generative AI In Amazon Shareholder Letter: What Investors Need To Know

AMZN Price Action: Amazon has a 52-week high of $158.60 and a 52-week low of $81.43. 

The stock was up 3.23% at $100.99 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Amazon.