CNBC’s Jim Cramer said on Monday that Amazon CEO Andy Jassy’s earnings call changed how Wall Street views massive artificial intelligence investments. Before this presentation, investors remained skeptical about the profitability of hyperscalers’ spending. Andy Jassy managed to convince the market by explaining how Amazon’s spending would translate into cash flows over decades, allowing the company to raise its investment budget from $200 billion to $220 billion. Amazon stock recorded its biggest one-day gain in over a decade. In contrast, Alphabet saw its share price fall despite similar capital spending, as the company failed to clearly explain how these investments would generate financial returns.
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