1 month ago
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Jennifer Saibil, The Motley Fool
Thu, April 16, 2026 astatine 9:20 AM CDT 4 min read
CEOs of nationalist companies typically see a shareholder missive arsenic portion of their yearly reports, and Andy Jassy's letters since helium became CEO of Amazon (NASDAQ: AMZN) 5 years agone person been enjoyable and informative to read.
This year's summation was a substance of idiosyncratic communicative and a deeper look astatine immoderate of the interior workings of the Amazon world. And portion it's each CEO's occupation to beryllium affirmative astir the company's authorities of affairs and aboriginal prospects, Jassy made respective important points that each existent and imaginable shareholder should wage attraction to now.
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The marketplace soured connected Amazon arsenic it announced much and much wealth spent connected artificial quality (AI). Amazon banal fell further aft the latest announcement that the institution would put an eye-popping $200 cardinal successful superior expenditures successful 2026.
Jassy seemed to beryllium expecting this and was connected the antiaircraft erstwhile talking astir it astatine the time. In the letter, helium reiterated that, arsenic you mightiness imagine, absorption has enactment large thought into the investment, and that it's a no-brainer considering the opportunity. The institution has debated "whether this exertion is over-hyped, whether we're successful 'a bubble,' and if the margins and [return connected investing capital] ROIC volition beryllium appealing. My beardown conviction, astatine slightest for Amazon, is that the answers are no, no, and yes," Jassy wrote.
He compared AI to electricity, and noted that it took 40 years for it to drawback connected arsenic a means of powering each location and business. He sees AI adoption astatine a complaint 10 times faster. Amazon Web Services (AWS) had a $58 cardinal tally complaint 3 years in, and the AWS AI concern has a $15 cardinal tally complaint 3 years in. He said that Amazon added 3.9 gigawatts of powerfulness successful 2025, and it's "monetizing that capableness arsenic accelerated arsenic it's installed." That includes 2 clients who asked for each of the Graviton spot capableness successful 2026.
If you are an ardent Amazon follower, you'll cognize that the institution has a "Day 1" culture. It's consenting to instrumentality risks to marque things happen, and its innovations don't ever cookware out. They besides don't travel consecutive lines; nary advancement does. Amazon wouldn't beryllium the world's largest institution (by sales) contiguous if it hadn't made large moves similar buying up competing e-commerce companies erstwhile it was archetypal starting out, launching each kinds of technological advances, and starting caller businesses similar AWS.
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