Hassett: No Evidence AI is Causing Job Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: Newsfilter
- Impact of AI on Employment: National Economic Council Director Hassett stated that there is currently no evidence that artificial intelligence is causing job losses, despite tech companies like Amazon, Meta, and Oracle announcing layoffs, indicating AI's role in work automation.
- Context of Layoffs: Block announced nearly 4,000 layoffs in February, reducing its workforce by almost half, with CFO Amrita Ahuja noting a shift towards smaller teams leveraging AI for increased efficiency, reflecting the industry's reliance on AI.
- Future Research Initiatives: Hassett mentioned that while there are no signs of job losses now, the White House is studying the impact of AI on the future workforce and has established a task force to address this challenge.
- Industry Dynamics Observation: Despite the layoffs, Hassett's comments highlight AI's potential in enhancing productivity and automating work, suggesting that companies still see long-term value in AI during their transformation processes.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
Current: 272.680
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Partnership with OpenAI: The collaboration between Cerebras and OpenAI is deepening, with OpenAI committing over $20 billion, underscoring the critical role of Cerebras' chips in training generative AI models, thereby solidifying its market position.
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- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, demonstrating the company's successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and sustainability.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion has raised investor concerns regarding future spending and debt levels, particularly as the company forecasts capital expenditures to rise to $31 billion, which could impact stock performance.
- Optimistic Market Outlook: Despite challenges, CoreWeave's backlog has approached $100 billion, indicating strong market demand, and S&P recently upgraded its credit outlook from stable to positive, reflecting market confidence in its future growth.
See More
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- Significant Revenue Growth: CoreWeave's latest quarter saw revenue exceed $2 billion, more than doubling year-over-year, reflecting strong market performance amid surging AI compute demand, despite pressures from high capital expenditures.
- Diversified Customer Base: Currently, 10 customers have pledged to spend at least $1 billion on CoreWeave services, indicating successful expansion of its customer base, which reduces reliance on any single client and enhances business stability and growth potential.
- Increased Debt Risk: CoreWeave's reliance on high leverage for expansion raises concerns among investors regarding its future capital spending and debt management, even as S&P upgraded its credit outlook from stable to positive, potentially impacting stock performance.
- Strong Backlog: CoreWeave's backlog is nearing $100 billion, representing active contracts and future revenue sources, demonstrating robust market demand in the AI sector, despite significant short-term stock price fluctuations.
See More
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- Historical Lessons: Even the smartest individuals in history have faced significant losses in stock investing, highlighting that market volatility is an unavoidable risk in investing, necessitating investors to be psychologically prepared to handle such fluctuations.
- Amazon Case Study: Taking Amazon as an example, the company has experienced substantial stock price volatility throughout its development, and investors who can endure short-term fluctuations may have the opportunity for long-term capital appreciation, leading to wealth growth.
- Coca-Cola Analysis: Coca-Cola's stock price has also undergone multiple fluctuations; however, its brand value and market position have allowed long-term holders to achieve substantial returns, emphasizing the importance of patience and long-term investment.
- Investment Mindset: The video underscores that possessing the psychological resilience to cope with market volatility is crucial for success in investing, and investors should cultivate this mindset to remain calm and rational in the face of market uncertainties.
See More
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- AI Employment Impact: White House National Economic Council Director Hassett stated that there is currently no evidence that artificial intelligence is causing job losses, emphasizing the government's focus on studying AI's future implications for the workforce.
- Tech Layoff Wave: Despite Hassett's optimistic remarks, companies like Amazon, Meta, and Oracle have announced layoffs, with some highlighting AI's role in automating work and boosting productivity, reflecting tension within the industry.
- Block Layoff Example: Block announced in February that it would lay off nearly 4,000 employees, reducing its workforce by almost half, with CFO Amrita Ahuja noting that the company is leveraging AI to accelerate operations and enhance team efficiency, indicating a reliance on AI.
- Shifts in Industry Dynamics: Amid rapid advancements in AI technology, Wall Street has observed a changing of the guard, with Intel and AMD shares rising while Nvidia lags, reflecting varying market responses to AI investments.
See More
