Apr. 9 at 8:45 PM
$AMZN Jassy letter supports bullish LT view - Evercore ISI PT
$285
CEO Andy Jassy’s Annual Shareholder Letter contained many key themes and datapoints that support our Bullish long-term view on AMZN shares. Most interesting to us was a) AWS’s AI revenue run rate was over
$15B in Q1 (we had assumed
$5-
$10B) and therefore now comprises approx. 10% of AWS revenue; b) AWS’s chip business now has a
$20B+ revenue run rate and is growing triple digit % Y/Y; c) Trainium can provide several hundred basis points of operating margin leverage over time; d) Project Leo now has more than 200 satellites into space, making it the third-largest low Earth orbit network operating today; e) Amazon Now’s deployment in India is causing Prime members to triple their shopping frequency; f) the introduction of perishables into Same-Day Delivery in early 2025 has caused perishables sales to grow by over 40 times; and g) the average number of monthly Same-Day customers in rural areas nearly doubled in 2025.