Amazon ($AMZN) – App Studio & Insider Selling – July 13, 2024
App Studio
Amazon debuted the AWS App Studio. This is a GenAI tool that builds apps by simply verbally dictating what to create. It leans on the managed AWS infrastructure and top-notch security to take the headache out of maintaining apps too. This new product will intuitively save developers and entire departments untold hours of time in jump-starting app creation. I’m sure companies will still want some manual touchpoints to steer app use cases and interfaces, but this should absolutely shrink the time to perfection and deployment. Yet another tool that positions Amazon to capture the future software monetization layer of GenAI. It joins other coding companions like Q and CodeWhisperer, its Rufus shopping companion, a planned ChatGPT clone and many other products in its toolkit.
Insider Selling
Bezos has been selling a lot of shares recently. He’s done so before… Meta’s Zuckerberg has done so before… Jensen Huang is currently doing so and has done so before… Most founders of fabulously successful companies have cashed out a portion of their proceeds. And who can blame them? Bezos built an empire. Now he wants to fly rockets, pamper his wife, buy really big boats, and live it up. And guess what? He has earned it and then some.
For us shareholders, this doesn’t concern me in the least. There are dozens of reasons to sell stocks (Blue Origin ain’t cheap to operate). Overreacting to what is often noisy selling is usually misguided and routinely a mistake. I prefer to consider the pristine fundamentals and demand/margin tailwinds we frequently write about here. I will rely on those metrics coinciding with a very reasonable multiple and upward estimate revisions… and I will lean on a world class management team. This is noise.
