"Amazon ( NASDAQ:AMZN) just filed paperwork to cut another 2,200 corporate jobs in Seattle, marking the latest chapter in what's becoming a systematic hollowing-out of its headquarters. The WARN notice with Washington's Employment Security Department signals permanent cuts hitting the region where Amazon once symbolized tech's gravitational pull. Here's the tension: Amazon's stock is up 7.27% over the past month and trading at $242.96. Analysts are piling on buy ratings with KeyBanc setting a $308 target and Wedbush going to $340."
"The answer is in the efficiency playbook Amazon's been running since 2023. EPS climbed from $0.17 in Q3 2022 to $1.95 in Q3 2025, a transformation driven by aggressive cost management and AI-powered automation. Andy Jassy's mandate is clear: replace middle management layers with algorithmic decision-making. As we discussed in today's Daily Profit newsletter, this AI-driven efficiency trend is reshaping how investors evaluate tech giants. The 14,000-role AI displacement strategy isn't a response to weakness but an acceleration of what's already working."
"Wall Street loves it. KeyBanc called Amazon its "top large-cap idea in Internet and Retail," citing underestimated AWS re-acceleration. Wedbush sees $25.2 billion in Q4 operating income, positioning Amazon as their "top eCommerce pick for 2026." Amazon's margin expansion strategy reflects a broader shift in how tech companies balance growth with profitability. The company's AWS segment and AI-driven cost management will be key factors when earnings are reported on February 5, providing insight into whether the efficiency gains can sustain analyst projections."
Amazon filed notice to cut 2,200 corporate jobs in Seattle, adding to reductions that reflect a hollowing-out of its headquarters. The company reported $1.95 Q3 EPS, up sharply from $0.17 in Q3 2022, driven by cost management and AI-powered automation. Management is prioritizing replacement of middle-management layers with algorithmic decision-making and pursuing a wider 14,000-role AI displacement strategy. Analysts remain bullish, with KeyBanc and Wedbush issuing high price targets and optimistic operating-income forecasts. AWS re-acceleration and AI-driven margin expansion are set to be focal points ahead of earnings on February 5.
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