AMZN Poised for "Very Strong" 4Q? Joy Tang Sees AI & Ecommerce Ramp

Vídeo em Inglês, publicado pelo canal Schwab Network.

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Video summary

This video discusses Amazon's financial results, market reactions, and heavy investments in artificial intelligence and infrastructure. Joy Tang, CEO of Markable, analyzes the shift in Prime Day timing affecting quarterly results, consumer sentiment improvements, creator incentives, and the future outlook for e-commerce and social commerce.

Key points

• Amazon's recent financial results caused a market overreaction, partly due to the shift of Prime Day from July to June, moving results from Q3 to Q2.
• Heavy investments in AI infrastructure by tech giants like Amazon, Google, and Meta are essential for staying competitive, despite impacting short-term cash flow.
• AWS continues to grow with a massive backlog, and Amazon is bringing capacity online as quickly as possible to meet demand.
• Consumer sentiment is recovering as gas prices ease, boosting shopping behavior and driving strong expectations for future quarters.
• Social commerce is expanding rapidly, with traffic shifting and creators playing a vital role through incentives and affiliate programs on platforms like Amazon.

Topics

AmazonArtificial IntelligenceE-commerceAWSFinancial ResultsSocial CommerceConsumer Sentiment

Video transcript

Transcript from available captions; it may contain errors.

severe for Amazon. So let's bring Sam back into the conversation. Welcome. And Joy Tang, the CEO of Markable. Joy, thank you for being with us. Now, Amazon is still down about 2%, but I had conversations morI was speaking to said they thought there was a chance it could turn green. By the of the day. We obviously didn't get that, but I w like to know just wha takeaways were from the results and if they reall were as bad as perhaphey're being perceived, or if it's maybe just caught up in some of the negativity. Thank you. Yeah, I definitely think there's a maras an overreaction right now, judging by the numbers. Actually, Amazon changed the Prime Day from July to June. So like what wassed to be the result in quarter three now shifted to quarter two. An then actually took off 400 basis points for the quarter three result. But if you add that 400 basis point back to their online store earnings, they aually beat the expecta Similarly for the online advertising revenue as well. So right now, the market seems to be gra with this problem and trying to get its head around the fact that, yes, have the cloud business that's going for them similar to Google, but it's going to come at a cost of the coreusiness. And that profitability and the fact it's going to potentially c at the expense of what are engines? Do you see that as the case, o that assessment a overba special situati since AI last year, we see how ade like ChatGPT and all that is. I mean, right now it's pretty normal for big company like Amazon, Google and meta to heavily invest on AI. If you look at all of them, yes, you know, Amaznvested, you know, 200 billion on AI infcture in 2026 that definitely eat up a ton of cash flow, but that is actually quitel. Like, I think they're investing the right skill because AI coming as a strong wave, like you can either stay on top or be big, you know, enterprises, the right thing. You know,ng Google and Meta are spending like over 100 billion, up to 200 billion investment on AI. That's the only way to stay on top. And so as we look at that, mean, with the freeh flow swinging to a 42 plus billion outflow, they've got their roughly 220 billion in capitalnd, which you say you think is close to the right numbers here. If we juxtapose that against AWS and its massive backlog of North and $575 billion or so, I mean, Andy saying they're taking on customers and capacity almost as quickly as Amazon can bring it online. How long do investors have to wait to prove your thesis that this is going to offer returns that justify the investment? Yes. First of I do think that we're going to have a veryrong , like seeing how much incentive they're playing in the market right now. Like, you know, Mark is a creator company. We've seen like addl incentive, you know, Amazon is giving to creators. They're seeing like social media ily driving big pot now. And also within the last four months, this is the first time we actually seen consumer sentiment really picking back up after like gas prices have eased a little bit. And consyou know, shopping behavior are coming back. And there's tons of incentive right now. Amazon is giving to social media influencers, unlike other retailers who I think like they continue to stay ahead on top of like the e-commerce trend, the AI trend right now, I think we should, you know, look forward to a very strong quarter for joy. What kind of company do you think Amazon will be in the future? I mean, like 5 to 10 years from now because I heard somebody ask a question on a different financial network this morning whether the retail business would die. And I interesting question, because if yousk anyone on the street what Amazon does, tink of the e-commerce platform, they ly won't say AWS. Whereas in financial markets, this is how investors are evaluating valuing this company right now. So there seems to be a sort of dict. But if Amazon right now is saying we areAI company because is on fire, how much importa should we be giving to that retail business in the future?eah, I really think any company eventuallyl. To survive in the m will have to become an AI company. So I definitely think Amazon is AI company, Google, meta, they're all AI comp at the end of the day, becauseut AI, you really world. It doesn't matter. It's AWS or online retail. I think they heavily invest on AI, show that their commitment to growheir AWS and online retail business. Like, you know, retail side, just really a traffic engine, peopl to buy and go to a place, right? Like, but how do you surface product recommendation? How do you get people to the AWS se All of that is like, is actually AI algorithm behind like AI targeting. So anycompane an AI company. And Joy, you said you expect a strong Q4 and some of that tied to how well they did on their prime days, which you noted were not included in this quarterly results. We have the cyber five, of course, coming. So when you look at the all important holiday spend, what are you watching most closely to determine if it's holding up? And it will, in fact, be a strong Q Yes. If you guys think about how people make online purchase decisions, right? Either you search in retailer app or discover search on Google, or you go to social media to lookt content. So in the past, social commerce is like about 6 to 7% of the entire e-commerce. But we have projections s that, you know, in the few years it's going to become 30%. Just looking at the markable craters alone, last year, we drove 1 billion sales to retailer, and this year driving 2 billion. So I really thi foot traffic is shifting from offline to online. And where is that inside retailer apps or, is tha social? And sly people are spending more and more time on social. I think like, you know, with Amazon giving the right incentive for social media creators and knowing that they already suffering from, you know, shifting the quarter three result, 4% of that quarter two. And they're see like a backdrop of quarter three results. So they're heavily ing, giving more incentive to really bump up the qu four results. So based on I'm seeing, I have a strong, you know,ou know,beliefl be really strong. So Amazon recently already basically blocked Meta's news agents from going ots shopping ite. I'm wonds e personalized bots, because I made this reference yeste to Gene Munster, who is a tech analyst who sort of said that personalized bots is to make it easier for people to find stuff. We already see that happening. A does win for a few reasons because they find what you want. They've the speed, they've got the, but the former, the finding what you want part might be attack right now. Do you see that as an issue for Amazon? know they have a very bigy y crater dn. They're heavily investing on driving social traffic to Amazon right now. And they're actually sene of the highest incremental revenue compared to many other divisions ins Amazon. They're one of the most, I would say, advanced in social commerce infrastructure right retailers. There's many other retailers relying on thirdrty ad party agency to help them grow their creator program. But Amazon is one of the special case. They started the creator program o decade ago, and they have their own affiliate system, so they're very easy to keep of. What is thecremental rm where and with their whole, you know, AI system. Soow they're investing the right money, the right incentive in the right place. So think with Amazon's like strong internet, e-commerce DNA, they know where to put the money at. Amazonconvy basis that I needed something Id oftentimes through social channels. Really appreciate you jo us to take a look at the r we got from Amazon

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Assuntos: E-commerce, Plataformas e marketplaces, IA e tendências. Publicado no YouTube em 2026-10-30.

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