Amazon CEO Andy Jassy out with his annual letter to investors this morning.

It's a tradition on Amazon. Jeff Bazaos was always a must read.

Jassy with a number of big moves at unconventional cloud strategy cutting

underperforming business units and saying

Amazon needs to do better in grocery and in core retail. He also played up the

importance of the company's AI chips. Our own Steve Kovac is here to discuss

Steve, I don't know where to begin. What jumped out at you?

Yeah, let's talk about the cloud because he had some really interesting things to say

about AWS when he spoke with our Andrew Ross work in this morning.

Let's have a list of what he said and then we'll talk about that.

Other times that investment strategy leads to things that are maybe not as obvious to people.

AWS was a good example of that. I think that fewer people might have guessed that we

would build a low-Earth orbit satellite that we call Kuiper, but if you look at the need,

there are hundreds of millions of households who have, and businesses that have no connectivity to the internet.

Like, the idea here is they're going to continue investing in things that might seem a little crazy right now.

Space satellites, they're going to

still go down on AWS which they have to by the way that's the profit

center they have to keep that up what was interesting to me what he said

about AWS to Andrew though and throughout the letter was look people are our customers

need to spend less just like we need to optimize they need to optimize too and

we're willing to eat some revenue growth if it means hanging on to those customers in the long term.

By the way, Microsoft is saying the same thing.

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