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The Amazon Prime logo is displayed on the side of an Amazon delivery truck in Richmond, California, June 21, 2023. Prime subscribers, who pay $139 a year for free shipping and other services, will see no change. Shoppers who don't subscribe to Prime will have to spend at least $35 to qualify for free shipping, up from a previous minimum of $25. Amazon has tweaked the free shipping threshold for non-Prime members in the past. Walmart also has a $35 free shipping minimum for shoppers who aren't part of its loyalty program, Walmart+.
Persons: Kristina Pressentin, Pressentin, Andy Jassy Organizations: Amazon, UPS, Walmart Locations: Richmond , California
Amazon CEO Andy Jassy told employees who disagree with the return-to-office mandate that it's "not going to work out for you." Jassy declined to provide any data that supports his decision to bring employees back to the office. The months-long controversy waging at Amazon over its aggressive return-to-office mandate apparently has CEO Andy Jassy losing patience with defending it. And if employees didn't like it, they could leave the company, Jassy said, according to a recording of the meeting obtained by Insider. During the Fishbowl conversation, Jassy also argued Amazon didn't use any compelling data when it first allowed remote work during the pandemic.
Persons: Andy Jassy, Jassy, it's, didn't
"Those were judgment decisions by our leadership team," Jassy continued. As a leadership team, we've decided that we will be better for customers and for our business being in the office." Jassy's comments are the latest in the months-long tension between Amazon's employees and leadership team over the company's aggressive RTO policy. Amazon's top leadership looked at "a number of pieces of data" over the past two years regarding remote work, Jassy said. Another person blamed Amazon's leadership team for over-expanding during the pandemic under the belief that the hyper growth would last for a long time.
Persons: Andy Jassy, Jassy, we've, didn't, doesn't, It's, Amazon's, it's Organizations: Amazon, Services, AWS
Recent updates for Amazon return to office policies
  + stars: | 2023-08-23 | by ( Eugene Kim | ) www.businessinsider.com   time to read: +11 min
Previous pronouncements about the revolutionary benefits of remote work have been replaced by vague, data-light arguments on productivity gains from being in the office. Apple, Meta, Bloomberg and Google all have gleaming HQs that would look very silly if those companies continued to embrace remote work. Insider has asked Amazon for comment on its RTO policy several times in recent months and the company has responded. AdvertisementAdvertisementAn internal guideline, obtained by Insider, listed Amazon office locations and the dates they are expected to be fully "ready" to support the RTO mandate. That's what some Amazon employees have done by mocking the company's RTO policy and its famous leadership principles.
Persons: Brad Glasser, there's, we've, Amazon's, LINDSEY WASSON, Andy Jassy, Slack, Beth Galetti, Al Drago, Paul Vixie, Andy Jassy's, Mike Hopkins, Hopkins, Elaine Thompson, snafu, they'd Organizations: Amazon, Tech, Meta, Bloomberg, Google, Seattle, Reuters, Amazon SVP, Human, Services, Company, Amazon Video Locations: Seattle, Seattle , Washington , U.S, Beth Galetti REUTERS, Seattle , New York, Houston, Austin , Texas
Amazon spokesperson Rob Munoz confirmed the relocation policy, and said it affects a small percentage of the company's workforce. The e-commerce giant said hub locations vary by team, and each team determines which locations are their hub. Amazon said it will end a perk next year that allows staffers to get one free drink at in-office coffee shops. The company also reduced the amount it reimburses for parking, and stopped providing free Uber rides to and from work, employees said. Amazon said it still reimburses employees' public transportation costs in all major metro areas, and provides free commuter shuttles and campus shuttles.
Persons: Rob Munoz, Munoz, Andy Jassy Organizations: CNBC, Amazon Locations: Texas, Seattle , New York, Austin , Texas, Arlington , Virginia, Seattle
Artificial intelligence may only be in its early innings, but Goldman Sachs is naming its favorite stocks to benefit from this disruptive technology over the long haul. To find the winners and the company-specific earnings boosts from AI, Goldman first calculated the share of wage bill exposed to AI automation. Goldman found the potential earnings change from AI adoption by averaging the results from two scenarios. Outside the technology sector, Goldman Sachs highlighted Walmart and Walgreens Boots Alliance as potential winners within the consumer staples sector. AI could boost baseline earnings 44% overtime at Walmart, which last week lifted its full-year outlook due to heightened grocery and online spending.
Persons: Goldman Sachs, Goldman, Russell, Andy Jassy, Twilio, Jeff Lawson, CNBC's Michael Bloom Organizations: Amazon, CNBC, Software, Walmart, Walgreens Boots Alliance, Illumina, Occidental Petroleum
The push to get workers back to offices could put millions of jobs at risk if people don't comply. What makes this even more difficult to swallow for Meta employees is just how quickly Meta's tone has changed. In June, they were informed about the need to come into the office three days a week from September 5, per The Information. AdvertisementAdvertisementAmazon is making a similar play to Meta, with a return-to-office strategy that involves scare tactics. But since few people can afford to be out of a job right now, employers may get their way.
Persons: they'll, Zuckerberg's Meta, Lori Goler, Goler, Andy Jassy's, Insider's Linette Lopez Organizations: Labor, Stanford University, University of Chicago, MIT, ITAM University, Meta, Wall, Deloitte, Workplace Intelligence Locations: Silicon Valley, Silicon, Wall, Mexico, East Coast
The company is putting in place detailed and mandatory rules for in-office and remote work. See new rules on badge tracking, monthly evaluations, and remote workers only allowed in-office a few days per quarter. Meta founder and CEO Mark Zuckerberg used to say remote work was the way of the future . Meta's guidelines appear to be tailored specifically to avoid remote workers having their cake, and eating it, too. Both will be evaluated monthly, for in-office and remote workers, and employees found to be non-compliant will be notified.
Persons: Mark Zuckerberg, Lori Goler, Meta, Andy Jassy, Zuckerberg, Kali Hays, Hugh Langley Organizations: Meta, Facebook, Google, Employees, Twitter Locations: khays
Amazon employees are mocking the company's return-to-office policy in a very Amazon way. But the company's aggressive return-to-office policy , which has become a contentious issue internally , has caused some employees to enjoy mocking the famous principles. Earlier this week, an Amazon employee shared a satirical version, titled "Leadership Principles for RTO," on an internal staff forum. Leaders demote other leaders to individual contributor if they aren't willing to relocate to a hub office. There are extra points for growing headcount as long as it's in a hub office.
Persons: Andy Jassy, it's, didn't, blinders, It's, Butts Organizations: Amazon, Burn
Amazon does not disclose how many data centers it occupies, where they are located, or how much electricity they consume. Many of Amazon's data centers listed in the permits have been built recently and some may still be under construction. "You cannot run a data center based on the variability of solar and wind," Boston said. Any producer of renewable energy can sell one REC for every megawatt hour of renewable energy it generates. Brady, the Cushman & Wakefield data center executive, said that data centers often match their backup generation to the capacity of a data center's power supply.
Persons: Shaolei Ren, David Ward, Abraham Silverman, Sean Brady, Glenn Youngkin, Steve Helber, Terry Boston, , Ben Hertz, Wood Mackenzie, Andy Jassy Mike Blake, Amazon's, Priya Barua, We've, Barua, Blackstone, Weston Swenson, Brady, Swenson, Josh Levi Organizations: Amazon, Washington DC, Amazon Web Services, UC Riverside, Columbia University's Center, Global Energy, Cushman & Wakefield, Dominion Energy, France's, AP, Greenhouse Gas Initiative, Republican, State Corporation Commission, Boston, state's Department, Environmental, Reuters, Microsoft, Google, Apple, Clean Energy Buyers Association, Virginia's Department, Industry, Cushman &, Dominion, Data Center Coalition Locations: Virginia, New York City, Washington, Seattle, France, Ward, Northern Virginia, West Coast, Cushman & Wakefield, CBRE
The goal is to build automation tools for AI security and foster partnerships across the company. "In Q2 2023, Amazon Security created the Maverick program to ensure LLM based experiences uphold our high security standards to protect customer data and trust. The Amazon Web Services cloud unit also created an independent team focused on helping customers use generative AI, Insider previously reported . The new Maverick initiative wants to "understand GenAI risks" to Amazon and create "centralized GenAI security testing tools," according to the internal document. The second involves partnering with security teams to "create GenAI security guidance and add specific tasks to existing security mechanisms," the document added.
Persons: John, Flynn, Uber's CISO, Adam Montgomery, Maverick, Andy Jassy, LLMs, Jassy Organizations: Amazon, Amazon Security, Excellence, Amazon's, Microsoft, Google, Services, AWS
Limp regularly appeared at Amazon hardware events, which are typically held each fall but sometimes occur more than once a year, to announce new products. Amazon said Limp would remain in his role for the next few months and the company will announce his successor in the coming weeks. Amazon is set to unveil new products at its annual event Sept. 20, hosted at the company's Northern Virginia headquarters, known as HQ2. "It pains me to have to deliver this news as we know we will lose talented Amazonians from the Devices & Services org as a result." In January, Limp said Amazon remains "fully committed" to the Alexa unit despite the job cuts in the division.
Persons: David Limp, Amazon's, Limp, Andy Jassy, Jassy, , Annie Palmer Organizations: Amazon.com Inc, Amazon, CNBC, Wall Street, Devices, Services Locations: Seattle, Virginia
Amazon is cutting some of its private label brands as part of a broader effort to rein in costs, the company confirmed to CNBC. The number of Amazon's private label brands has expanded rapidly over the years to include things like Goodthreads apparel, Rivet furniture and Presto! Matt Taddy, Vice President of Amazon Private Brands, said in a statement that the company has looked to eliminate some in-house products after determining they didn't resonate with customers. Amazon has said sales from private label brands represent only 1% of its total retail sales. As of 2019, the company said it had 158,000 private brand products across 45 brands, along with other brands sold by its online grocery service Amazon Fresh.
Persons: Matt Taddy, we've, Taddy, Andy Jassy, Jeff Bezos Organizations: CNBC, Amazon Private Brands, Wall Street, Federal Trade Commission, Amazon, Brands, House, Big Tech, FTC
An Amazon delivery drone is on display at Amazon's BOS27 Robotics Innovation Hub in Westborough, Massachusetts on November 10, 2022. Jim Mullin, Prime Air's chief pilot, left Amazon last month, according to his LinkedIn profile. Just as Prime Air was set to launch early this year and start delivering packages sent to consumers, CEO Andy Jassy, who succeeded Bezos in 2021, embarked on the largest round of layoffs in company history, which included significant job cuts at Prime Air. But problems for Prime Air predated the economic downturn. At the beginning of the year, the company began durability and reliability (D&R) testing, which requires that Prime Air complete several hundred hours of flying without any incidents.
Persons: Jim Mullin, Robert Dreer, Mullin, Jeff Bezos, Obama, Andy Jassy, Bezos, David Carbon's, There's, Nobody, Simone Griffin, Griffin, Zipline Organizations: Amazon, Prime Air, Marine, College Station, CNBC, Federal Aviation Administration, Air, Walmart Locations: Westborough , Massachusetts, Pendleton , Oregon, Oregon , California, Texas, , California, Pendleton
A study from economists at MIT and UCLA found productivity dropped when people worked from home. The study observed groups of data-entry workers in India working from home and from the office. Some workers argue they're more productive working remotely. Those in the work-from-home group were 18% less productive than those working from the office. Why data-entry workers?
Persons: It's, David Atkin, Andy Jassy, Zuckerberg's Meta Organizations: MIT, UCLA, Service, National Bureau of Economic Research, Massachusetts Institute of Technology, University of California, Fortune, Microsoft, Amazon Locations: India, Wall, Silicon, Los Angeles, Chennai
Here are Monday's biggest calls on Wall Street: Morgan Stanley reiterates Apple as overweight Morgan Stanley said it's sticking with its overweight rating after Apple's quarterly 10-Q report. Morgan Stanley upgrades Laureate to overweight from equal weight Morgan Stanley said the education company is a beneficiary of nearshoring. Morgan Stanley reiterates Palo Alto Networks as overweight Morgan Stanley said the company has a "differentiated" and "disruptive" platform. " UBS reiterates Berkshire Hathaway as buy UBS said it's standing by its buy rating on shares of Berkshire after its earnings report Saturday. Morgan Stanley reiterates Cinemark as overweight Morgan Stanley said it's standing by its overweight rating on Cinemark as the success of "Barbie" and "Oppenheimer" has "squashed" the theatrical bear case.
Persons: Morgan Stanley, Apple, DA Davidson, Andy Jassy, Wells, Holley, it's, Raymond James, Charles Schwab, Schwab, EchoStar, Guggenheim, Berkshire Hathaway, Cinemark, Oppenheimer, Truist, Piper Sandler, Piper, MNST, Wright Organizations: UBS, Meta, Facebook, Bank of America, Nvidia, U.S ., Networks, Alto Networks, United Airlines, Berkshire, Comcast, CNBC, Monster Beverage Locations: WhatsApp, nearshoring, United, Berkshire, NBCUniversal
In one quarter — one off-cycle quarter that didn't feature a no new iPhone — Apple (AAPL) delivered a whopping $81.8 billion in sales. I came up with "own it, don't trade it" for Apple because there have been so many quarters like this one. The people who sold Apple shares on Friday no doubt sold it on their Apple devices. I would be more worried if Apple's customer satisfaction went down than I am that iPhone sales lagged. Apple CEO Tim Cook speaks during Apple's Worldwide Developers Conference (WWDC) at the Apple Park campus in Cupertino, California, on June 5, 2023.
Persons: Tim Cook, Luca Maestri, Tim, Jensen, da, Huang, Andy Jassy, Roku, Jassy, Goldman Sachs, Jim Cramer's, Jim Cramer, Jim, Josh Edelson Organizations: Apple, ESPN, Amazon, Web Services, Nvidia, Services, Walmart, Oracle, Amazon Web, Google, Jim Cramer's Charitable, CNBC, Apple's Worldwide, AFP, Getty Locations: Indonesia, India, Philippines, Mexico, Turkey, Texas, New Jersey, Cupertino , California
In a call with investors on Thursday, Andy Jassy, Amazon’s chief executive, said work on generative A.I. And during recent calls with analysts, Google, Meta and Microsoft also said they would increase investments to support A.I. Generative A.I. The number of customers using Microsoft’s Azure OpenAI Service, a tool to build on the generative A.I. models developed by its partner OpenAI, has increased this year to more than 11,000, from 250.
Persons: Andy Jassy, Tim Cook, Stacy Rasgon, Bernstein, OpenAI, “ It’s, , Gavin Baker Organizations: Google, Meta, Microsoft, McKinsey, OpenAI, Management Locations: Boston
Amazon CEO Andy Jassy says the company is working on multiple generative AI projects. Amazon CEO Andy Jassy says the company is working really hard on generative AI. Jassy said during the company's Q2 earnings call on Thursday that "every single one" of Amazon's businesses had "multiple generative AI initiatives" going on. Amazon has been trying to keep pace with fellow tech peers when it comes to generative AI. Managers have been asking staff for input on ways to incorporate AI-powered products like ChatGPT into everyday workflows or consumer-facing products, Insider reported.
Persons: Andy Jassy, Jassy, ChatGPT, Eugene Kim Organizations: Alexa, Amazon, Google, Microsoft
Amazon stock rallies after blowout quarter
  + stars: | 2023-08-04 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com   time to read: +3 min
Amazon shares rallied 8% on Friday, a day after the company reported blowout second-quarter earnings and issued upbeat guidance. Amazon notched its biggest profit beat since 2020, boosted by CEO Andy Jassy's aggressive cost-cutting efforts. For the third quarter, Amazon said it expects sales of between $138 billion and $143 billion, topping consensus estimates of $138.25 billion, according to Refinitiv. Wall Street cheered the results, lauding the strong results for Amazon Web Services and improving retail margins. Morgan Stanley analysts characterized the shift as the "next retail flywheel" for Amazon.
Persons: Andy Jassy, Andy, Bernstein, Morgan Stanley, — CNBC's Michael Bloom, CFRA Organizations: Amazon.Com Inc, Amazon, Revenue, Analysts, Amazon Web Services, Amazon executives Locations: Seattle , Washington , U.S, Refinitiv, America
CNBC Daily Open: Amazon surges as Apple stumbles
  + stars: | 2023-08-04 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. However, overall sales fell 1% year over year to $81.8 billion, with iPhone, iPad and Mac revenue all dropping. Defense stocks on the offenseSouth Korean defense stocks have shot up over the past 12 months, with Hanhwa Aerospace surging 66% year to date. Interest in South Korean arms have increased because of Russia's invasion of Ukraine and escalating tensions on the Korean Peninsula.
Persons: Andy, Australia's, Morgan Stanley Organizations: CNBC, Apple, Amazon Amazon, Treasury, Big, Defense, Hanhwa Aerospace, China Companies Locations: Asia, Pacific, South, Ukraine, South Korea, China, India
The pros discussed the e-commerce giant after second-quarter revenue and earnings both topped analysts' estimates. Amazon stock jumped 8.3% Friday. After the closing bell Thursday, Amazon reported earnings of 65 cents per share and revenue of $134.4 billion . Amazon's AWS cloud revenue surged 12% to $22.1 billion and advertising revenue also beat expectations, coming in at $10.7 billion. CEO Andy Jassy claimed Amazon had its "biggest ever" Prime Day sales event with online spending hitting $12.7 billion over the 48-hour period.
Persons: Andy Jassy, Rosenblatt, Jim Cramer Organizations: Amazon Locations: Seattle
For the second quarter, Amazon's revenue grew 11% to $134.4 billion, beating estimates of $131.5 billion from analysts polled by Refinitiv. In recent months, Amazon Web Services (AWS) saw its sales growth slow as wary businesses scrutinized their cloud bills. The unit beat estimates of around $21.7 billion in second-quarter cloud sales, increasing them 12% to $22.1 billion. Its rivals posted bigger jumps off smaller bases: 28% growth in Alphabet's June-quarter cloud revenue and a 26% quarterly increase for Microsoft's Azure. Longer-term, Amazon aims to turn one unit, its $35 billion in yearly gross business-to-business e-commerce sales, into $100 billion, Jassy told analysts.
Persons: Pascal Rossignol, Brian Olsavsky, Olsavsky, Andy Jassy, Arun Sundaram, Sundaram, Jassy, Thomas Monteiro, Investing.com, Monteiro, Refinitiv, Chavi Mehta, Jeffrey Dastin, Noel Randewich, Arun Koyyur, Aurora Ellis, Chris Reese Organizations: REUTERS, Amazon.com Inc, Amazon, Google, Microsoft, Refinitiv, Amazon Web Services, CFRA Research, Reuters, Thomson Locations: Lauwin, France, Alphabet's, Bengaluru, Jeffrey Dastin San Francisco
Amazon's outlook brightens on cloud, consumer sales lift
  + stars: | 2023-08-03 | by ( ) www.reuters.com   time to read: +3 min
Facing an array of challenges, Amazon has aimed to keep its mantle as the world's biggest cloud provider and online retailer. Despite this, Amazon sped up revenue growth in the second quarter. Sales increased 11% to $134.4 billion, compared to estimates of $131.50 billion from analysts polled by Refinitiv. AWS beat estimates of around $21.7 billion in second-quarter cloud sales, increasing them 12% to $22.1 billion. The company forecast current-quarter net sales in the range of $138 billion and $143 billion.
Persons: Pascal Rossignol, Long, Andy Jassy, Refinitiv, Chavi Mehta, Arun Koyyur, Aurora Ellis Organizations: REUTERS, Amazon.com Inc, Google, Microsoft, Amazon, Refinitiv, Amazon Web Services, Thomson Locations: Lauwin, France, Bengaluru
Wall Street was happy to see stabilizing growth at the company's cloud unit Amazon Web Services and an uptick in operating margins. With Amazon turning a corner on profitability and AWS revenue growth stable, we think the stock still has more room to run. There's been plenty of debate surrounding AWS lately, with analysts and investors questioning whether revenue growth would decelerate to the high single digits. In North America, second-quarter operating margins improved to 3.9%, compared with 1.2% in the first quarter and a loss of 0.8%) a year ago. Third quarter outlook Amazon followed up the strong second quarter with a very bullish view of the third.
Persons: There's, Andy Jassy, Amazon, Jim Cramer's, Jim Cramer, Jim, Sheldon Cooper Organizations: Club, Web Services, Revenue, Refinitiv, Rivian Automotive, Amazon Web Services, North, CNBC, Lightrocket, Getty Locations: North America
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