Under CEO Andy Jassy, Amazon (NASDAQ: AMZN ) is continuing to make multiple moves that should tremendously boost its top and bottom lines over the longer term. These maneuvers involve the conglomerate’s e-commerce, artificial intelligence, and healthcare businesses. As a result of Amazon’s extremely promising initiatives, I continue to believe that Amazon stock is significantly undervalued.
I still believe that all investors should buy the company’s shares. Neutralizing an E-Commerce Threat Some on the Street believe PDD Holdings ‘ (NASDAQ: PDD ) Temu website could pose a major threat to Amazon’s e-commerce business. That’s because, as Investor’s Business Daily reported in May, “The Temu shopping site is drawing a following with head-turning discounts.
” Of course, Temu can offer products at very cheap prices because labor costs in China are so low. To his credit, Jassy has come up with a solution to that threat. Specifically, the U.
S. conglomerate intends to launch “a shopping section” that enables American consumers to buy products directly from China. Among them are “unbranded fashion (and) home goods.
” The move effectively eliminates the threat to Amazon from Temu and other similar China-based e-commerce websites. I don’t think it’s a coincidence Amazon stock climbed a significant 6.5% between June 25, the day before the news came out, and July 1.
AI Everywhere Turning to AI, Amazon is said to be working on an AI chatbot, which is reportedly c.