WEBVTT - Amazon CEO Andy Jassy (EXTENDED VERSION) 0:00:00.120 --> 0:00:02.040 Thank you Andy so much for coming down. It's really 0:00:02.080 --> 0:00:04.280 wonderful to have you here in person. It's my pleasure 0:00:04.280 --> 0:00:05.920 to be here. Thanks you. Has found out we actually 0:00:05.920 --> 0:00:09.559 lived in the same dorm in college, just a few 0:00:09.600 --> 0:00:12.880 years apart. So it's been almost a year since you 0:00:12.920 --> 0:00:15.840 took over from Jeff as CEO of Amazon, and it's 0:00:15.840 --> 0:00:18.560 been a year of first the first stock split since 0:00:18.560 --> 0:00:21.640 the dot com boom, the first vote to unionize an 0:00:21.640 --> 0:00:26.400 Amazon warehouse, your first Bloomberg Technology conference. Thank you. I 0:00:26.400 --> 0:00:31.360 want to start with a quick report card. I'm Emii Chang, 0:00:31.360 --> 0:00:33.440 and welcome to this edition of the Bloomberg Studio One 0:00:33.479 --> 0:00:43.479 point oh podcast. In February one, Jeff Bezo shocked the 0:00:43.520 --> 0:00:46.720 world by announcing plans to step down as Amazon CEO. 0:00:47.360 --> 0:00:50.160 A few months later, he passed the reins to Andy Jase, 0:00:50.479 --> 0:00:53.360 his longtime top lieutenant, the architect of one of the 0:00:53.400 --> 0:00:57.840 company's biggest profit engines, Amazon Web Services, Bezos has stayed 0:00:57.840 --> 0:01:01.480 on as executive chair, leaving Jazz to navigate a critical 0:01:01.520 --> 0:01:05.440 inflection point in Amazon's history. How does the company manage 0:01:05.440 --> 0:01:09.280 market turmoil, rising inflation and regulatory scrutiny, and a push 0:01:09.360 --> 0:01:13.280 by some warehouse workers to unionize, all while keeping customers 0:01:13.280 --> 0:01:16.200 coming back joining me on this edition of Bloomberg Studio. 0:01:16.200 --> 0:01:19.720 At one point, oh, Amazon second CEO Andy Jassey, he 0:01:19.840 --> 0:01:23.600 joined us from our flagship Bloomberg Technology Summit in San Francisco. 0:01:26.360 --> 0:01:30.480 I'd like you to grade your view of Amazon's performance, 0:01:31.120 --> 0:01:33.440 and we've got time later to to really dig in. 0:01:33.800 --> 0:01:36.640 But quickly, how would you grade Amazon's performance over the 0:01:36.720 --> 0:01:40.280 last year with customers. Well, I think we've you know, 0:01:40.640 --> 0:01:43.520 I'm not sure I'm the right person to grade myself 0:01:43.880 --> 0:01:46.360 during the year or not, but I'll give you my take. 0:01:46.400 --> 0:01:48.480 You know, I think with respect to customers, I think 0:01:48.480 --> 0:01:50.320 we've done a lot of good, you know. And I 0:01:50.360 --> 0:01:53.400 think if you look at during the pandemic, which really 0:01:53.440 --> 0:01:56.680 has extended until the early part of this year, you know, 0:01:56.840 --> 0:02:00.400 so much as a ppe and food and central items 0:02:00.400 --> 0:02:04.440 and people equipping their home offices were bought from Amazon, 0:02:04.520 --> 0:02:07.600 and you know, to scale the way we needed to. Remember, 0:02:07.640 --> 0:02:11.320 in two thousand twenty, we grew thirty nine percent year 0:02:11.320 --> 0:02:14.280 over year on a two billion dollar revenue run rate. 0:02:14.280 --> 0:02:17.080 I mean, it's very it's unprecedented, it's never happened before. 0:02:17.440 --> 0:02:19.360 But it was really hard to do that, and we 0:02:19.400 --> 0:02:23.560 had to take the really big footprint of fulfillment center footprint. 0:02:23.600 --> 0:02:26.160 We built the first twenty five years of Amazon and 0:02:26.240 --> 0:02:29.240 doubled it in twenty four months. And we you know, 0:02:29.320 --> 0:02:32.720 we built a transportation network, which we planned on doing 0:02:32.760 --> 0:02:35.200 over several years, but because we weren't going to be 0:02:35.240 --> 0:02:37.639 able to get enough capacity at the cost structure we 0:02:37.680 --> 0:02:40.200 needed to serve all the big demand in twenty one, 0:02:40.720 --> 0:02:43.200 we built out that transportation network in just a couple 0:02:43.240 --> 0:02:46.760 of years. Uh, you know, we um we doubled, uh 0:02:46.919 --> 0:02:49.520 nearly doubled the size of our workforce during that time, 0:02:49.720 --> 0:02:52.680 and we still didn't have enough people to to receive 0:02:52.760 --> 0:02:55.120 all the items and our fulfillment centers and to ship them, 0:02:55.120 --> 0:02:57.919 and and so we had to make decisions. We looked at, 0:02:57.960 --> 0:03:00.480 you know, we didn't have enough people to see them 0:03:00.480 --> 0:03:02.440 in the right spots to get them to customers as 0:03:02.440 --> 0:03:04.920 cost effectively as we normally did. And so we decide, 0:03:04.960 --> 0:03:07.680 do we just allow ourselves to be out of stock 0:03:07.760 --> 0:03:10.240 with much longer delivery times and we stock them wherever 0:03:10.280 --> 0:03:12.840 we can, even if it meant we're gonna have to 0:03:12.880 --> 0:03:15.160 pay for a lot more transportation costs to get it there. 0:03:15.160 --> 0:03:18.080 And in all those cases, we sited on the side 0:03:18.080 --> 0:03:20.760 of customers, and I think we I think customers really 0:03:20.760 --> 0:03:23.560 appreciated it, and I think you saw it in other businesses. 0:03:23.680 --> 0:03:25.760 You know, AWS is a really big part of helping 0:03:26.360 --> 0:03:30.320 companies and governments have business continuity during the pandemic, and 0:03:30.880 --> 0:03:33.480 so many companies and organizations in the last year made 0:03:33.520 --> 0:03:36.200 the strategic decision that they were going to stop running 0:03:36.200 --> 0:03:40.560 their own infrastructure technology and disproportionately chose AWS to help 0:03:40.600 --> 0:03:42.600 them move to the cloud. And we spend a lot 0:03:42.640 --> 0:03:45.160 of time helping them make that transformation. So I think 0:03:45.200 --> 0:03:47.040 we've done a lot of good for customers, and we 0:03:47.120 --> 0:03:49.360 have always sided on the side of customers. So what 0:03:49.400 --> 0:03:52.440 about investors, I mean, the stock is down significantly from 0:03:52.440 --> 0:03:56.880 a peak last year. Obviously there's broader market term weil. Yeah, 0:03:57.200 --> 0:04:00.440 I think, you know, for investors and financially, I'd say 0:04:00.480 --> 0:04:03.600 it's mixed. You know, I think we have some businesses 0:04:03.600 --> 0:04:06.360 that are growing really strongly. If you look at AWS, 0:04:06.520 --> 0:04:11.200 you know, in year every year, you know, it's not 0:04:11.240 --> 0:04:13.560 a seventy four billion dollar revenue run right business, it's 0:04:13.560 --> 0:04:16.960 pretty unusual growth, and we grew fifty percent year every 0:04:17.000 --> 0:04:19.400 year in our advertising business. You know, it's the thirty 0:04:19.400 --> 0:04:22.440 two billion dollar revenue run right business. So some business 0:04:22.480 --> 0:04:25.520 has grown really strongly, and you know, we've continued to 0:04:25.600 --> 0:04:29.360 grow in our retail business despite pretty crazy comparables during 0:04:30.839 --> 0:04:33.200 I think the real challenge for us there is on 0:04:33.240 --> 0:04:35.520 the cost side, and there have been several things that 0:04:35.560 --> 0:04:38.960 have happened, um, some of which are more controllable than others. 0:04:38.960 --> 0:04:42.360 You know. I think the part that's less controllable is 0:04:42.400 --> 0:04:45.080 really around inflation. And I think we thought that inflation 0:04:45.120 --> 0:04:48.480 would start to attenuate in two and with the war 0:04:48.560 --> 0:04:50.320 in Ukraine, it just went the other way and it's 0:04:50.440 --> 0:04:54.000 significantly accelerated. So the cost of trucking and line hall 0:04:54.080 --> 0:04:57.600 and ocean and air and fuel has just substantially gone up, 0:04:58.240 --> 0:05:00.640 and I think that will tenuate at some point. No 0:05:00.640 --> 0:05:03.120 one knows how long that will take. I think the 0:05:03.160 --> 0:05:07.240 more controllable areas for us are really around fulfillment center 0:05:07.320 --> 0:05:10.080 capacity and productivity. And I think on the fulfilment center 0:05:10.160 --> 0:05:13.839 capacity side, it was taking about twenty four months to 0:05:13.880 --> 0:05:17.200 build new filming centers during the pandemic, and so we 0:05:17.240 --> 0:05:19.520 had to make decisions, you know, in mid two thousand 0:05:19.560 --> 0:05:22.760 twenty in early on how much demand we're going to 0:05:22.839 --> 0:05:25.280 plan for and the team made a decision, which I 0:05:25.520 --> 0:05:28.359 think in retrospect was a good decision that we were 0:05:28.360 --> 0:05:30.160 going to build the high side of what we could 0:05:30.200 --> 0:05:33.200 imagine consumer demand being, because we didn't want to constrain 0:05:33.279 --> 0:05:36.160 consumers or sellers who were trying to place inventory, you know, 0:05:36.320 --> 0:05:39.880 FU filming centers for fulfilment by Amazon, and so, you know, 0:05:40.240 --> 0:05:42.599 we we end up with more capacity and we need 0:05:42.680 --> 0:05:44.600 right now, and there's a number of things that we're 0:05:44.600 --> 0:05:47.159 working on. We we've stopped building on properties where we 0:05:47.160 --> 0:05:49.160 don't need it yet, and we've let a number of 0:05:49.240 --> 0:05:52.000 leases laps and not a small number, you know, of 0:05:52.040 --> 0:05:55.880 both those things. But you know, we are very confident 0:05:55.880 --> 0:05:58.320 that we're gonna grow into that cost structure on the 0:05:58.360 --> 0:06:01.200 on the fulfillment center side, and we decided that if 0:06:01.240 --> 0:06:03.640 we were going to have to air one way, we'd 0:06:03.720 --> 0:06:05.960 air on the side of customers, even if it meant 0:06:05.960 --> 0:06:09.160 short term trouble for us or challenges for us, you know. 0:06:09.200 --> 0:06:11.200 And I think on the productivity side, what I would 0:06:11.240 --> 0:06:15.440 say is that when you build as quickly as we 0:06:15.480 --> 0:06:18.839 did in the fulfillment center space and the transportation network, 0:06:19.520 --> 0:06:22.200 you're always gonna have areas that you can optimize and 0:06:22.279 --> 0:06:24.719 be more streamlined in And that's true for us, And 0:06:24.760 --> 0:06:26.960 we've had a lot of occasions in our history where 0:06:27.000 --> 0:06:29.599 we've worked on productivity and made improvements, and we have 0:06:29.640 --> 0:06:32.440 a lot of clearly defined niches and I'm confident we'renna 0:06:32.440 --> 0:06:34.120 get back to the right level of profitability. You are 0:06:34.120 --> 0:06:36.760 going to sub lease thirty million square feet of space? 0:06:37.080 --> 0:06:39.880 Is there a mistake? And the execution there because of 0:06:39.880 --> 0:06:43.040 the overball, Again, because you have to make these decisions 0:06:43.080 --> 0:06:45.960 two years in advance, and again, if you put yourself 0:06:46.040 --> 0:06:49.039 back in twenty where we were growing thirty nine percent 0:06:49.320 --> 0:06:51.360 year over a year on a two five billion dollar 0:06:51.400 --> 0:06:54.680 revenue run rate, it's very hard to know what's the 0:06:54.760 --> 0:06:57.240 right amount to build and you have to make a decision. 0:06:57.240 --> 0:06:59.400 And we made the decision to air on the side 0:06:59.440 --> 0:07:02.600 of our consumers and sellers, and we knew it might 0:07:02.760 --> 0:07:05.040 mean that we might have more capacity for some short 0:07:05.080 --> 0:07:06.720 period of time, but we were willing to do that 0:07:06.760 --> 0:07:09.880 because we're always long term oriented and customer focus. Now, 0:07:09.880 --> 0:07:13.720 how would you grade Amazon's performance with employees, your colleagues? 0:07:13.720 --> 0:07:16.680 There has been some high profile Yeah, I think that 0:07:17.040 --> 0:07:21.080 um And when I started in this gig, we had 0:07:21.200 --> 0:07:24.640 just create a new leadership principle to strive to be 0:07:24.720 --> 0:07:26.640 Earth's best employer. And I think we're you know, we 0:07:26.720 --> 0:07:29.240 spent a lot of time trying to think through what 0:07:29.360 --> 0:07:32.200 that really means is broad, and I think we've made 0:07:32.280 --> 0:07:34.200 a fair bit of progress, but it's still early. In 0:07:34.240 --> 0:07:38.560 my opinion, I think Amazon in general is a unusually 0:07:38.600 --> 0:07:40.560 compelling place to work. You know, when you have a 0:07:40.600 --> 0:07:44.320 mission which is to make customers lives better and easier 0:07:44.360 --> 0:07:47.600 every day, and relentlessly invent to do so, it's inspiring 0:07:48.040 --> 0:07:51.840 if you layer on top of that that we you know, 0:07:51.920 --> 0:07:54.280 we not only make customers lives better, but people get 0:07:54.320 --> 0:07:57.560 to work on a scale that's nearly unprecedented given the 0:07:57.640 --> 0:08:00.680 nature of Amazon's business, with a culture that likes to 0:08:00.720 --> 0:08:03.880 invent and is willing to move fast and its ideas, 0:08:03.920 --> 0:08:06.240 and willing to be long term oriented, which means if 0:08:06.280 --> 0:08:07.880 you want to leave a mark on the world that 0:08:07.920 --> 0:08:09.960 outlasts you, you have a chance to do so. That 0:08:10.040 --> 0:08:13.360 combination is really unusual, and I think it's why we 0:08:13.440 --> 0:08:16.320 rank high and a lot of them polls in great 0:08:16.320 --> 0:08:19.200 places to work. But I still think there are many 0:08:19.240 --> 0:08:23.280 areas that we can keep improving, you know, and I think, UM, 0:08:23.320 --> 0:08:26.200 you know, the first one I'd mentioned is safety. You know, 0:08:26.360 --> 0:08:29.960 I think that UM you know, in our fulfillment centers, 0:08:30.000 --> 0:08:32.160 that is the top priority. And you know, when you 0:08:32.200 --> 0:08:34.360 get into the details of the numbers and outside of 0:08:34.360 --> 0:08:35.719 all the spin of it all, you know what we're 0:08:35.720 --> 0:08:38.880 about average there, but we're not trying to be average, 0:08:38.960 --> 0:08:40.640 you know. We want to be the best in the 0:08:40.679 --> 0:08:42.480 industry and the best in the world at it. And 0:08:42.840 --> 0:08:45.600 that's a high priority in an area that I'm passionate 0:08:45.600 --> 0:08:48.000 about and the team is passionate about. I think we've 0:08:48.040 --> 0:08:50.880 made a lot of progress in UM over the last 0:08:50.920 --> 0:08:54.640 several years, including last year, on diversity and inclusion, but 0:08:55.160 --> 0:08:56.720 to really get to where we want to get to, 0:08:56.800 --> 0:08:58.320 I think we have a lot of work to still do. 0:08:58.400 --> 0:09:01.560 Their You know, we have a very strong set of 0:09:01.600 --> 0:09:05.760 managers in Amazon, but we have grown so much in 0:09:05.800 --> 0:09:08.960 the last ten years, and we have so many new managers, 0:09:09.000 --> 0:09:12.640 many of whom we have promoted internally, and we have 0:09:12.760 --> 0:09:15.640 management trading programs, but I think you've got to kind 0:09:15.640 --> 0:09:18.400 of retool those things to to really make sure that 0:09:18.480 --> 0:09:21.600 you have managers who are developing your teammates the way 0:09:21.640 --> 0:09:24.360 you want managing is a privilege, and so you know, 0:09:24.400 --> 0:09:26.160 we've we've spent a lot of time in the last 0:09:26.240 --> 0:09:31.240 number of months um refining our management training programs that 0:09:31.280 --> 0:09:33.320 you'll see us rolling out, you know. And then I 0:09:33.400 --> 0:09:38.000 also think that our services and tools to our external 0:09:38.040 --> 0:09:42.560 facing customers have outpaced those for our internal employees. And 0:09:42.640 --> 0:09:44.439 I think we have a lot of work we can 0:09:44.480 --> 0:09:48.160 do to make our employees everyday lives easier. And we 0:09:48.200 --> 0:09:51.479 have we've identified kind of a top hundred list of 0:09:51.480 --> 0:09:53.440 of areas that we can be better at that we're 0:09:53.520 --> 0:09:56.480 just metronomically stepping through. And so we've made a lot 0:09:56.520 --> 0:09:58.160 of progress, but we have a lot of work to 0:09:58.200 --> 0:10:03.079 you still say, Clark just announced fairly abruptly that he's 0:10:03.120 --> 0:10:06.400 leaving Amazon after twenty three years. He has been described 0:10:06.440 --> 0:10:09.760 as an absolutely integral member of the S team, knew 0:10:09.800 --> 0:10:14.360 the logistics and fulfillment center network better than anyone. Just 0:10:14.440 --> 0:10:17.600 announced he's going to be co CEO flex Port. What 0:10:17.720 --> 0:10:21.640 happened with Dave specifically and where you surprised, Well, you know, 0:10:21.720 --> 0:10:26.319 I think, uh, different people want to do different jobs 0:10:26.320 --> 0:10:30.200 with different responsibilities at different times, and it's incredibly personal, 0:10:30.480 --> 0:10:33.120 and I think Dave wanted a different gig at this point, 0:10:33.160 --> 0:10:35.520 and I don't begrudge him at all. I mean, Dave 0:10:35.600 --> 0:10:38.400 has added so much to Amazon over the last twenty 0:10:38.440 --> 0:10:41.439 three years, and particularly over the last two and a 0:10:41.480 --> 0:10:43.480 half years, which have been among the most crazy in 0:10:43.520 --> 0:10:46.680 the history of Amazon. And I think that if you 0:10:46.840 --> 0:10:50.760 want to build a business that lasts a hundred plus years, 0:10:50.800 --> 0:10:52.800 and that lasts all of us, you have to get 0:10:52.880 --> 0:10:54.920 used to these sort of transitions and make sure that 0:10:55.000 --> 0:10:57.160 you're you know, you're doing the right succession planning and 0:10:57.160 --> 0:11:00.760 you've got the right talent to keep building the business. 0:11:00.800 --> 0:11:02.920 And you know, we've done that historically and I expect 0:11:02.920 --> 0:11:05.280 we'll do it again. Elon Musk just came out saying 0:11:05.280 --> 0:11:08.600 he has a super bad feeling about the economy, Tesla 0:11:08.760 --> 0:11:12.000 laying off ten percent of his staff. Jamie Diamond says 0:11:12.120 --> 0:11:15.240 he's preparing for an economic hurricane. The World Bank just 0:11:15.280 --> 0:11:18.880 slashed its forecast for global growth. How do you feel 0:11:18.920 --> 0:11:22.400 about the economic climate? Well, it wasn't planning on giving 0:11:22.400 --> 0:11:28.640 any guidance to please, but super bad or super super bad, 0:11:33.600 --> 0:11:37.079 I think, Uh, there's some things that relates to Amazon 0:11:37.200 --> 0:11:40.960 that are useful to remember, you know, I think the 0:11:41.120 --> 0:11:47.240 first pieces, remember the of the of the worldwide retail market, 0:11:47.280 --> 0:11:51.240 segment share is offline. And if you believe that that 0:11:51.320 --> 0:11:53.640 equation is going to flip at some point, which we do, 0:11:53.720 --> 0:11:56.040 I think it will will flip over a long period 0:11:56.040 --> 0:11:59.559 of time. But if you believe that the companies that 0:11:59.640 --> 0:12:02.439 have a customer experiences like we do, I think we're 0:12:02.440 --> 0:12:04.240 gonna are gonna do all right. And you know, and 0:12:04.240 --> 0:12:08.040 that and great customer experiences mean you have really broad selection, 0:12:08.160 --> 0:12:13.240 low prices, and very fast delivery that's reliable to customers. Yeah. 0:12:13.240 --> 0:12:16.959 I also think that if you look at different down turns, UM, 0:12:17.000 --> 0:12:18.679 you know, should we have one at some point And 0:12:18.720 --> 0:12:20.719 we've been through a few obviously in the twenty five 0:12:20.800 --> 0:12:24.720 years that I've been at Amazon. Customers change their habits. 0:12:24.760 --> 0:12:27.280 You know. They tend to be pickier about what they 0:12:27.360 --> 0:12:29.640 buy and when they buy, and who they buy from, 0:12:29.800 --> 0:12:33.120 and they often pick the partners and the companies that 0:12:33.240 --> 0:12:35.839 they trust, you know, and that have great customer experiences 0:12:35.920 --> 0:12:39.160 like the dimensions I mentioned earlier. UM, And so you know, 0:12:39.240 --> 0:12:42.480 I also think there's you know, those two reasons, those 0:12:42.520 --> 0:12:45.080 two factors give me some optimism that even if we 0:12:45.120 --> 0:12:48.200 have a downturn, that we have the potential to still grow. 0:12:48.360 --> 0:12:52.240 I would say that regardless though, we have so many 0:12:52.280 --> 0:12:54.480 things that we believe we can do better for customers. 0:12:54.559 --> 0:12:57.120 We have a roadmap that's you know, probably three to 0:12:57.240 --> 0:12:59.280 five years long, and we're going to continue to invent. 0:12:59.280 --> 0:13:01.960 We're gonna continue to be insurgent, and we have a 0:13:01.960 --> 0:13:03.480 lot of work to do to get to where we 0:13:03.520 --> 0:13:06.480 think we ultimately can get for customers. Now, when it 0:13:06.520 --> 0:13:10.960 comes to the stock, as I mentioned, it has fallen significantly. 0:13:11.120 --> 0:13:14.480 Do you think investors are missing something or has tech 0:13:14.520 --> 0:13:16.880 just been overvalued? And this also of course matters to 0:13:16.920 --> 0:13:22.320 employees who are significantly paid in stock. Well, you know, look, 0:13:22.760 --> 0:13:25.199 I haven't been at Amazon for twenty five years. I 0:13:25.240 --> 0:13:27.640 arrived at the company three weeks before we went public. 0:13:28.240 --> 0:13:30.480 I have never tried to predict what the stock is 0:13:30.480 --> 0:13:32.800 going to do, and any time I've tried to a 0:13:32.800 --> 0:13:35.320 little bit, I've been wrong. So, you know, I think 0:13:35.320 --> 0:13:39.559 it's I think it's pretty hard to um uh, pretty 0:13:39.559 --> 0:13:40.920 hard to predict what it's going to be in any 0:13:40.960 --> 0:13:44.200 short period of time. I do really believe that, Benjamin, 0:13:44.440 --> 0:13:48.199 that Benjamin Graham maximum that um in the short term, 0:13:48.440 --> 0:13:51.360 the stock market tends to be a voting machine in 0:13:51.360 --> 0:13:53.120 the long term, it tends to be a weighing machine. 0:13:53.160 --> 0:13:54.760 And I think if you you know, we've been through 0:13:54.760 --> 0:13:57.599 a lot of points in twenty five years to be 0:13:57.840 --> 0:14:03.160 an Amazon where the macro factors are off and um 0:14:03.400 --> 0:14:07.040 stocks are down. Our stock is down, but you can't 0:14:07.080 --> 0:14:09.880 really control that, you know. We have a concept. We 0:14:09.920 --> 0:14:13.360 talked about a lot of Amazon inputs and outputs, you know, 0:14:13.360 --> 0:14:15.600 in the ultimate output for a company of share price, 0:14:15.640 --> 0:14:18.120 you know, and then other big outputs are free cash 0:14:18.160 --> 0:14:21.760 flow or profit or revenue. You can't really manage the outputs. 0:14:21.800 --> 0:14:24.320 You have to manage at the input level, and that's 0:14:24.360 --> 0:14:26.840 where we spend all our time. And so in these 0:14:26.880 --> 0:14:30.600 types of circumstances, you have to focus on what customers 0:14:30.640 --> 0:14:32.640 care about and building for them in the long term 0:14:32.720 --> 0:14:35.040 and inventing on their behalf. You got to get your 0:14:35.040 --> 0:14:37.840 cost structure in the right spot. But if you do 0:14:37.920 --> 0:14:40.640 the right things for the business long term, things tend 0:14:40.680 --> 0:14:42.600 to work out. I think we've had very good returns 0:14:42.600 --> 0:14:44.880 for investors, and I expect that to be true. Again. 0:14:45.240 --> 0:14:47.920 I have, as you could probably tell a lot of 0:14:47.960 --> 0:14:53.520 optimism for and I'm an optimistic person, but I also, um, 0:14:53.560 --> 0:14:57.400 you know, there's this food fighter song called Congregation that 0:14:57.480 --> 0:15:00.000 has that line you need blind faith, but no false hope, 0:15:00.200 --> 0:15:03.680 you know. So I do have blind faith, but I 0:15:03.760 --> 0:15:05.520 also think I don't have false hope. You know. I 0:15:05.880 --> 0:15:10.280 have a lot of of data and uh, you know, 0:15:10.320 --> 0:15:14.120 and and I think insights internally where all of our 0:15:14.160 --> 0:15:17.040 businesses are on the right path. But if you measure 0:15:17.080 --> 0:15:20.320 at any one point with lots of things happening around you, 0:15:20.320 --> 0:15:22.000 you may not get to the same conclusion that you 0:15:22.040 --> 0:15:25.000 get too. Long term, what are the moon shots at 0:15:25.040 --> 0:15:28.240 Amazon that are capturing most of your time and attention? 0:15:28.360 --> 0:15:30.600 What is going to define the next era of Amazon? 0:15:30.640 --> 0:15:33.200 I mean is it? Is it astro the home robot, 0:15:33.320 --> 0:15:36.080 or is it something else? Well, you know, we have 0:15:36.200 --> 0:15:39.640 a unique way that we look at big new investments. 0:15:39.680 --> 0:15:41.240 And I'm not sure it's right or wrong. It just 0:15:41.280 --> 0:15:44.600 happens to be our way. And we ask ourselves when 0:15:44.600 --> 0:15:50.040 we're considering something four questions. We ask, Uh, if it's successful, 0:15:50.120 --> 0:15:52.000 can to be big and move the needle? At Amazon? 0:15:52.440 --> 0:15:55.280 Is it being well served today? Do we have a 0:15:55.320 --> 0:15:59.000 differentiated approach? And do we have competence there? And if not, 0:15:59.080 --> 0:16:01.480 can we acquire clean If we like the answer to 0:16:01.480 --> 0:16:04.160 those questions we'll go pursue it with a single thread 0:16:04.240 --> 0:16:06.480 team that isn't distracted by the rest of the business. 0:16:06.520 --> 0:16:11.400 And sometimes that leads to innovation investments that seemed pretty obvious, 0:16:11.520 --> 0:16:13.160 Like you know, when I got to the company was 0:16:13.160 --> 0:16:16.160 a books only retailer, and then we expanded to music 0:16:16.200 --> 0:16:18.680 and video and electronics and choice, it seems obvious to people. 0:16:18.960 --> 0:16:22.440 Other times that process does not lead to investments that 0:16:22.480 --> 0:16:25.720 seem obvious to people. I mean, AWS was something that 0:16:25.760 --> 0:16:28.760 people externally and internally thought was a little bit nutty 0:16:28.800 --> 0:16:31.760 at the time. But just imagine what Amazon would be 0:16:31.800 --> 0:16:35.080 today without AWS and and I think that you see 0:16:35.080 --> 0:16:38.000 the same thing here. You know that there are so 0:16:38.040 --> 0:16:41.080 many significant investments from making that I'm excited about. I'm 0:16:41.080 --> 0:16:44.000 gonna have to constrain myself to a few, but you know, 0:16:44.560 --> 0:16:47.040 I'm really excited about what we're doing in the prime 0:16:47.120 --> 0:16:50.160 video space. I think we're clearly on the right track 0:16:50.240 --> 0:16:53.800 there and building a significant business. That's interesting because Netflix 0:16:53.800 --> 0:16:57.720 also just announced some layoffs, first subscriber loss in a decade, 0:16:57.880 --> 0:17:01.320 Disney cutting back on costs. Do you see Amazon strategy 0:17:01.320 --> 0:17:03.840 as fundamentally different from Netflix and Disney? And if so, 0:17:03.960 --> 0:17:06.760 how well you know We're very bullish on it. And 0:17:07.280 --> 0:17:10.280 remember we all the all the models are a little 0:17:10.280 --> 0:17:13.440 bit different. But for Prime Video we have twun or 0:17:13.520 --> 0:17:17.199 million plus Prime subscribers who are you know, get that 0:17:17.400 --> 0:17:20.520 entertainment for free by being part of Prime and so 0:17:21.080 --> 0:17:23.959 we have a little bit different pricing model than some 0:17:24.000 --> 0:17:27.439 of the others. But I'm incredibly encouraged by what we 0:17:27.480 --> 0:17:29.240 have coming if you if you look at me. We 0:17:29.400 --> 0:17:31.480 launched this show Reacher earlier in the year, was a 0:17:31.560 --> 0:17:35.000 huge hit. We you know, we have a new Masal season. 0:17:35.080 --> 0:17:37.600 We we just launched the New Boys season, which is 0:17:39.400 --> 0:17:43.000 I am a big Amazon, It's very good. Of course, 0:17:43.040 --> 0:17:44.800 we have glad of the Rings coming up, you know 0:17:44.840 --> 0:17:48.080 in September and Thursday and football, so I'm very bullish 0:17:48.119 --> 0:17:51.640 about it. UM we also, you know, we're excited about 0:17:51.680 --> 0:17:54.560 what we've done with mgm uh. You know, I think 0:17:54.600 --> 0:17:56.480 some of the assets there will go very well with 0:17:56.560 --> 0:17:58.680 the rest of what we're doing entertainment wise. We have 0:17:59.320 --> 0:18:03.200 had supported um channel there or platform there and free 0:18:03.280 --> 0:18:05.080 v which I think is appealing. And we have a 0:18:05.200 --> 0:18:08.119 channel's business, which is also a little bit different, where 0:18:09.280 --> 0:18:14.280 third party streaming companies will ingest all their content in channels, 0:18:14.280 --> 0:18:17.199 so they get kind of the leading viewing experience that 0:18:17.240 --> 0:18:19.760 we've built over a number of years, and then they 0:18:19.800 --> 0:18:23.159 get to sell monthly subscriptions as a channel to our 0:18:23.160 --> 0:18:25.880 two million plus prime subscribers. And so if you look 0:18:25.920 --> 0:18:29.119 at Warner Brothers, Discovery and Paramount and Stars and Global, 0:18:29.359 --> 0:18:33.520 they're building really significant subscription businesses. So I'm very bullish 0:18:33.520 --> 0:18:36.800 about that business. I'm I'm optimistic that we have a 0:18:36.880 --> 0:18:40.159 chance to build a significant grocery business, which is early 0:18:40.240 --> 0:18:45.720 stages for us. I am excited about uh Kuiper, which 0:18:45.760 --> 0:18:47.920 is our low earth orbit satellite that we're building. You 0:18:48.000 --> 0:18:51.560 gotta remember there three hundred to four hundred million people 0:18:51.560 --> 0:18:54.920 in the world who have limited to no Internet connectivity. 0:18:54.960 --> 0:18:56.879 I mean, just think about how different the world is 0:18:57.280 --> 0:18:59.280 when you don't have that type of connectivity. And so 0:18:59.320 --> 0:19:01.919 I think that's a really significant opportunity that has some 0:19:02.000 --> 0:19:06.240 aws characteristics to it. I continue to be very optimistic 0:19:06.240 --> 0:19:09.919 about Alexa, you know, building the world's best personal assistant. 0:19:10.600 --> 0:19:13.640 We have a you know, two hundred million endpoints already 0:19:13.640 --> 0:19:16.680 that are using Alexa. We're clearly onto something there. And 0:19:16.680 --> 0:19:20.400 and then you know, our autonomous driving ride hailing service 0:19:20.440 --> 0:19:22.040 and zooks that were building, you know, here in the 0:19:22.080 --> 0:19:25.200 Bay Area. I just think with the way auto consumption 0:19:25.320 --> 0:19:27.560 is evolving, I think that also is a chance to 0:19:27.560 --> 0:19:29.639 be a really significant business. Now. I don't know if 0:19:30.280 --> 0:19:31.760 I don't know if all of them are going to 0:19:31.840 --> 0:19:34.840 be successful, but if any one of them becomes the 0:19:34.880 --> 0:19:37.679 fourth pillar for us on top of Marketplace and Prime 0:19:37.680 --> 0:19:40.480 in AWS were completely different companies, just like we were 0:19:40.560 --> 0:19:44.280 when AWS became successful. So I think they're very worthwhile 0:19:44.320 --> 0:19:46.920 investments and bets, and I'm optimistic about We didn't mention 0:19:46.960 --> 0:19:51.439 Astro obviously though, powered, but I mean our home robots 0:19:51.480 --> 0:19:54.359 gonna be where I don't yet where is it? It's 0:19:54.400 --> 0:19:57.320 not really widely available for sale. What's the status? Hope 0:19:57.320 --> 0:20:01.960 you good one? Okay, um, thank you. Everyone's very curious 0:20:01.960 --> 0:20:05.640 about Jeff's role these days. What kind of executive chair 0:20:05.880 --> 0:20:08.080 he really is. He said when he left that he'd 0:20:08.359 --> 0:20:11.760 focus his attention and energies on initiatives that he really 0:20:11.800 --> 0:20:13.960 cares about as at Amazon. But from the outside, it 0:20:14.000 --> 0:20:17.400 looks like he's really focusing on philanthropy, he's focusing on space. 0:20:17.800 --> 0:20:20.919 What kind of an executive chairman is he? Well? He 0:20:21.040 --> 0:20:24.000 you know, Jeff is always going to be UM involved 0:20:24.040 --> 0:20:27.440 and UM he has. You know, I'm I feel very 0:20:27.480 --> 0:20:29.760 lucky to have been in Amazon for twenty five years. 0:20:30.320 --> 0:20:32.760 I feel very lucky to have worked directly for Jeff 0:20:32.960 --> 0:20:35.640 for twenty of them. And we have a really close 0:20:35.760 --> 0:20:38.000 relationship and have for a long time. And I think 0:20:38.000 --> 0:20:41.160 we share a lot of the same values about customers 0:20:41.200 --> 0:20:44.880