It’s a downright surprise to see the ambitious plans coming out of Amazon (NASDAQ:AMZN), and to see investors so completely skeptical. In fact, despite these noteworthy new goals, investors still turned Amazon down fractionally in Wednesday afternoon’s trading session.
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One of the biggest new plans from Amazon revolves around a new Prime membership benefit. The benefit in question is a discounted subscription for One Medical, a primary healthcare provider that Amazon picked up way back in July 2022 in a deal valued around $3.9 billion. With this, Prime members can get a One Medical membership for $9 per month, or $99 per year. The value on this one might be somewhat limited, though, as One Medical locations seem to be only in a handful of major cities, or places near them, like Cape Cod.
Amazon’s ambition rolled on from there, moving into a new large language model (LLM) known as Olympus. Olympus will have a total of two trillion parameters behind it, which will make it one of the biggest models around. By way of comparison, the GPT-4 model from OpenAI only has half that amount at one trillion. This isn’t the first time Amazon has trained a model; it previously handled the Titan. But a model at this scope is a whole new matter, and Amazon looks for Amazon Web Services to benefit from having its own in-house LLM to put to work.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 41 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $176.13 per share implies 24.51% upside potential.
