Bullish on Amazon as the tide turns backAmazon’s recent job cuts aren’t a sign of weakness, they’re a strategic recalibration. The company is shifting from broad expansion to focused execution. In the AI era, scale isn’t just about size, it’s about precision.
Amazon has trimmed roles across Alexa, devices, and some corporate functions. These are legacy bets, not core growth engines. At the same time, it’s doubling down on AI infrastructure, robotics, and cloud innovation. This is not belt-tightening for survival, it’s reallocation for higher returns.
The broader theme is operating leverage. Amazon is reshaping its cost structure to match a new kind of growth, leaner, smarter, more profitable. AI tools aren’t just powering customer-facing products, they’re cutting fulfillment times, optimising logistics, and automating warehouses. Fewer people, more output.
These cuts also signal cultural focus. Amazon is pushing resources into areas where it sees outsized opportunity. AI chips, ad tech, fulfillment innovation. All of these carry higher margins and more defensible moats than traditional retail or hardware.
To be clear, the job cuts matter. They’re part of the margin expansion story. But they must be seen in context. Amazon is not retreating, it’s refining. And for long-term investors, that distinction makes all the difference.
The stock is now sitting comfortably above its 200-day moving average.
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.
