Amazon (AMZN) reported better-than-expected third-quarter results and provided strong guidance. Arun Sundaram, Senior Equity Research Analyst at CFRA Research, joins Market Domination Overtime hosts Alexandra Canal and Josh Lipton to discuss the results and why the market is less concerned with Amazon’s spending compared to its peers artificial intelligence (AI) takes care of it.

“Really, you have the ingredients you needed to get the stock up,” Sundaram says.

The analyst explains that while all cloud hyperscalers are increasing their capital expenditures to invest in AI, investors appear to be less concerned about Amazon’s AI spending than those of Meta (META) and Microsoft (MSFT).

He says, “There are a few unique things” about Amazon,” including: “Amazon not only relies on chips from Nvidia,” but “they also build and develop their own AI chips that are more cost-effective and valuable.” Hence “I would also like to point out that Amazon has several levers to increase margins,” including its e-commerce business, advertising, Amazon Web Services and other segments.

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This post was written by Naomi Buchanan.