{"id":10871,"date":"2023-11-07T04:07:43","date_gmt":"2023-11-07T04:07:43","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-312-amazon-q3-2023-earnings-recap\/"},"modified":"2023-11-07T04:07:43","modified_gmt":"2023-11-07T04:07:43","slug":"jason-scot-show-episode-312-amazon-q3-2023-earnings-recap","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-312-amazon-q3-2023-earnings-recap\/","title":{"rendered":"Jason &#038; Scot Show Episode 312 Amazon Q3 2023 earnings recap"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<p>A weekly podcast with the latest e-commerce news and events. Episode 312 is breakdown of Amazon\u2019s Q3 2023 earnings.<\/p>\n<p> <span id=\"more-32076\"\/><\/p>\n<p><meta charset=\"utf-8\"\/><strong>Subscribe<\/strong>:<\/p>\n<figure><iframe loading=\"lazy\" style=\"border: none;\" src=\"http:\/\/html5-player.libsyn.com\/embed\/episode\/id\/28477781\/height\/360\/width\/640\/theme\/standard-mini\/autoplay\/no\/autonext\/no\/thumbnail\/yes\/preload\/no\/no_addthis\/no\/direction\/backward\/no-cache\/true\/\" width=\"640\" height=\"360\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Amazon reported another strong quarter across the board for Q3, soundly exceeding analyst profit expectations and retail industry averages. In this episode we break down the AWS AI, Ads, and retail performance.<\/p>\n<p><strong>Don\u2019t forget to like our\u00a0facebook page, and if you enjoyed this episode please write us a review on itunes.<\/strong><\/p>\n<p>Episode 312 of the Jason &amp; Scot show was recorded on Monday, October 30, 2023<span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id=\"chapterT\" class=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:26\" data-start=\"00:00:23.135\" data-end=\"00:00:25.635\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show\u00a0<\/span><span title=\"0:26 - 0:38\" data-start=\"00:00:25.515\" data-end=\"00:00:38.140\" data-spk=\"0\" data-label=\"Jason\">this is episode 312 being recorded on Monday October 30th right before Halloween I\u2019m Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:38]<\/small>\u00a0<span title=\"0:38 - 0:44\" data-start=\"00:00:38.164\" data-end=\"00:00:43.500\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back to Jason and Scot show listeners\u00a0<\/span><span title=\"0:43 - 0:54\" data-start=\"00:00:43.488\" data-end=\"00:00:54.118\" data-spk=\"1\" data-label=\"Scot\">Jason it\u2019s a Halloween Eve hallow Eve but also we just watch the Mac live presentation from Apple or live\u00a0<\/span><span title=\"0:54 - 1:00\" data-start=\"00:00:53.968\" data-end=\"00:01:00.145\" data-spk=\"1\" data-label=\"Scot\">presented recorded earlier presentation from Apple about new Macs,\u00a0<\/span><span title=\"1:00 - 1:06\" data-start=\"00:01:00.193\" data-end=\"00:01:06.418\" data-spk=\"1\" data-label=\"Scot\">so I don\u2019t know I think I\u2019m going to ask you about Max first are you going to get a new Mac are you sitting out this upgrade cycle.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:07]<\/small>\u00a0<span title=\"1:07 - 1:17\" data-start=\"00:01:06.683\" data-end=\"00:01:17.133\" data-spk=\"0\" data-label=\"Jason\">I am on the fence guy of course I want one I have scheduled a meeting with my family CFO to see if I can,\u00a0<\/span><span title=\"1:17 - 1:24\" data-start=\"00:01:17.241\" data-end=\"00:01:24.181\" data-spk=\"0\" data-label=\"Jason\">I can justify it so so we\u2019ll see I did not order one tonight I\u2019m actually.<\/span><br \/><span title=\"1:25 - 1:38\" data-start=\"00:01:24.572\" data-end=\"00:01:38.260\" data-spk=\"0\" data-label=\"Jason\">Still super happy with my M1 MacBook Pro so so I know M3 is at least three times better so so of course I want one but we\u2019ll see when I pull the trigger what about you is yours already on the way.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:38]<\/small>\u00a0<span title=\"1:38 - 1:47\" data-start=\"00:01:38.441\" data-end=\"00:01:47.346\" data-spk=\"1\" data-label=\"Scot\">I have been a while without an upgrade and running a little long on the tooth on this guy so yes\u00a0<\/span><span title=\"1:47 - 1:57\" data-start=\"00:01:47.232\" data-end=\"00:01:56.552\" data-spk=\"1\" data-label=\"Scot\">I have a new machine coming they were actually pretty generous on the trade-ins you should just do an experiment before you talk to the CFO plug-in that trade in and see if it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:56]<\/small>\u00a0<span title=\"1:56 - 1:58\" data-start=\"00:01:56.366\" data-end=\"00:01:58.052\" data-spk=\"0\" data-label=\"Jason\">That could be the.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:58]<\/small>\u00a0<span title=\"1:58 - 2:07\" data-start=\"00:01:57.802\" data-end=\"00:02:06.773\" data-spk=\"1\" data-label=\"Scot\">You a better presentation also if you have an Apple credit card which I\u2019m sure you do they have a really compelling offer there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:07]<\/small>\u00a0<span title=\"2:07 - 2:19\" data-start=\"00:02:07.231\" data-end=\"00:02:19.020\" data-spk=\"0\" data-label=\"Jason\">All right lots of lots of good good things to consider my nine-year-old has made it clear that we\u2019re not allowed to trade anything in it.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:17]<\/small>\u00a0<span title=\"2:17 - 2:20\" data-start=\"00:02:17.416\" data-end=\"00:02:20.096\" data-spk=\"1\" data-label=\"Scot\">It\u2019s got dibs on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:20]<\/small>\u00a0<span title=\"2:20 - 2:25\" data-start=\"00:02:19.796\" data-end=\"00:02:24.542\" data-spk=\"0\" data-label=\"Jason\">He\u2019s very he\u2019s very aware of the technology trickle down.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:24]<\/small>\u00a0<span title=\"2:24 - 2:33\" data-start=\"00:02:24.242\" data-end=\"00:02:32.643\" data-spk=\"1\" data-label=\"Scot\">Oh man well you can somewhere down the stream there\u2019s going to be one that you could trade in but I don\u2019t think it may have as much impact as your courage.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:32]<\/small>\u00a0<span title=\"2:32 - 2:39\" data-start=\"00:02:32.379\" data-end=\"00:02:39.301\" data-spk=\"0\" data-label=\"Jason\">I I don\u2019t know if he\u2019s ever going to own a computer device with a keyboard will see but yeah he\u2019s actually not that interested in my laptop.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:40]<\/small>\u00a0<span title=\"2:40 - 2:47\" data-start=\"00:02:39.553\" data-end=\"00:02:46.620\" data-spk=\"1\" data-label=\"Scot\">Speaking of baby geek or I guess now he\u2019s I don\u2019t know kindergarten geek.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:46]<\/small>\u00a0<span title=\"2:46 - 2:48\" data-start=\"00:02:46.320\" data-end=\"00:02:47.593\" data-spk=\"0\" data-label=\"Jason\">Third grade geek.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:47]<\/small>\u00a0<span title=\"2:47 - 2:56\" data-start=\"00:02:47.389\" data-end=\"00:02:56.138\" data-spk=\"1\" data-label=\"Scot\">Third grade geek what\u2019s he thinking about Halloween I hear he\u2019s kind of outgrown Star Wars which makes me casa.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:56]<\/small>\u00a0<span title=\"2:56 - 3:10\" data-start=\"00:02:55.844\" data-end=\"00:03:10.121\" data-spk=\"0\" data-label=\"Jason\">He still like Star Wars but he yeah he is not doing a Star Wars character last year he did a Pokemon character he did Pikachu and this year he\u2019s stepped up to Charizard so that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[3:09]<\/small>\u00a0<span title=\"3:09 - 3:11\" data-start=\"00:03:08.776\" data-end=\"00:03:10.752\" data-spk=\"1\" data-label=\"Scot\">Very rare.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[3:11]<\/small>\u00a0<span title=\"3:11 - 3:15\" data-start=\"00:03:10.759\" data-end=\"00:03:14.922\" data-spk=\"0\" data-label=\"Jason\">Enables well I think it depends on which Charizard butt.<\/span><br \/><span title=\"3:15 - 3:21\" data-start=\"00:03:15.452\" data-end=\"00:03:20.841\" data-spk=\"0\" data-label=\"Jason\">That steps up the whole opportunity to build pyrotechnics into the costume.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[3:21]<\/small>\u00a0<span title=\"3:21 - 3:26\" data-start=\"00:03:21.497\" data-end=\"00:03:26.496\" data-spk=\"1\" data-label=\"Scot\">All right watch out for some evil Pokemon people that try to capture.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[3:26]<\/small>\u00a0<span title=\"3:26 - 3:36\" data-start=\"00:03:26.196\" data-end=\"00:03:36.273\" data-spk=\"0\" data-label=\"Jason\">Yeah I think the big debate in our house which isn\u2019t hasn\u2019t fully happened yet is who\u2019s trick-or-treating with Stephen and who\u2019s staying behind to try to scare the bejesus out of neighborhood kids.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[3:36]<\/small>\u00a0<span title=\"3:36 - 3:45\" data-start=\"00:03:36.219\" data-end=\"00:03:44.956\" data-spk=\"1\" data-label=\"Scot\">I\u2019m thinking you and a gorilla suit or you could be in the last year\u2019s Pokemon suit or Pikachu suit that could be a fun combo.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[3:45]<\/small>\u00a0<span title=\"3:45 - 3:56\" data-start=\"00:03:45.010\" data-end=\"00:03:55.766\" data-spk=\"0\" data-label=\"Jason\">Yeah last year I actually had knee surgery only a few days before Halloween so I won by default because I couldn\u2019t really walk but this year I feel like I have no good excuse.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[3:56]<\/small>\u00a0<span title=\"3:56 - 4:02\" data-start=\"00:03:55.959\" data-end=\"00:04:02.262\" data-spk=\"1\" data-label=\"Scot\">Right as the title shows the purpose of this as we have some Amazon news to report on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:02]<\/small>\u00a0<span title=\"4:02 - 4:15\" data-start=\"00:04:02.124\" data-end=\"00:04:15.169\" data-spk=\"0\" data-label=\"Jason\">Amazon news your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[4:15]<\/small>\u00a0<span title=\"4:15 - 4:28\" data-start=\"00:04:14.869\" data-end=\"00:04:28.365\" data-spk=\"1\" data-label=\"Scot\">Well Jason it was a kind of interesting setup coming into Earth earning season this quarter the whole world was focused not on e-commerce not on marketplaces not on omni-channel not on payments some of our favorite topics but\u00a0<\/span><span title=\"4:28 - 4:36\" data-start=\"00:04:28.306\" data-end=\"00:04:36.021\" data-spk=\"1\" data-label=\"Scot\">also not on ads one of your favorite topics but everyone is now obsessed with AI thanks to the success of chat Juju\u00a0<\/span><span title=\"4:36 - 4:50\" data-start=\"00:04:35.883\" data-end=\"00:04:50.316\" data-spk=\"1\" data-label=\"Scot\">GPT so coming into the quarter Amazon was kind of on the backside of a lot of the other big companies so we had Microsoft come out and they did really well with AI the their partnership with\u00a0<\/span><span title=\"4:50 - 4:55\" data-start=\"00:04:50.245\" data-end=\"00:04:54.949\" data-spk=\"1\" data-label=\"Scot\">open a.i. \/ chat gbt is bringing tons of workloads to azure.<\/span><br \/><span title=\"4:55 - 5:03\" data-start=\"00:04:55.112\" data-end=\"00:05:03.314\" data-spk=\"1\" data-label=\"Scot\">How much is their cloud computing platform and then Google really underwhelmed everyone with what they\u2019re doing there you know\u00a0<\/span><span title=\"5:03 - 5:16\" data-start=\"00:05:03.188\" data-end=\"00:05:15.572\" data-spk=\"1\" data-label=\"Scot\">they\u2019re they\u2019re kind of tiptoeing it\u2019s very clear that they don\u2019t want to kill the Golden Goose that is Google search by putting too much AI to that so allow their experiments are in Bard which is kind of way off to the side\u00a0<\/span><span title=\"5:15 - 5:25\" data-start=\"00:05:15.477\" data-end=\"00:05:25.331\" data-spk=\"1\" data-label=\"Scot\">I\u2019ve tried barred three times I can never get it to have the features that they say it should because my corporate Google account you know either won\u2019t have access or it says that feature is not here yet.<\/span><br \/><span title=\"5:26 - 5:33\" data-start=\"00:05:25.548\" data-end=\"00:05:32.764\" data-spk=\"1\" data-label=\"Scot\">Um and I think people are really starting to worry about Google on this one.<\/span><br \/><span title=\"5:33 - 5:43\" data-start=\"00:05:33.029\" data-end=\"00:05:43.232\" data-spk=\"1\" data-label=\"Scot\">So then that teed it up where all eyes were on AWS to see how are they doing and I think we\u2019ve covered this but.<\/span><\/p>\n<p><small>[5:44]<\/small>\u00a0<span title=\"5:44 - 5:53\" data-start=\"00:05:43.659\" data-end=\"00:05:52.709\" data-spk=\"1\" data-label=\"Scot\">The Amazons approach to this is to be kind of agnostic for lack of a better word so they\u2019re kind of like hey if you want to use.<\/span><br \/><span title=\"5:53 - 6:04\" data-start=\"00:05:52.961\" data-end=\"00:06:04.450\" data-spk=\"1\" data-label=\"Scot\">Any of these different models we\u2019re going to basically let you run them on AWS compute and we\u2019re going to have all kinds of different graphic Processing Unit or GPU\u00a0<\/span><span title=\"6:04 - 6:14\" data-start=\"00:06:04.337\" data-end=\"00:06:13.806\" data-spk=\"1\" data-label=\"Scot\">tears available from you know their own chip set to older Nvidia chip sets to the new ones and kind of be y 0,\u00a0<\/span><span title=\"6:14 - 6:18\" data-start=\"00:06:13.855\" data-end=\"00:06:17.911\" data-spk=\"1\" data-label=\"Scot\">LM bring your own large language model.<\/span><\/p>\n<p><small>[6:18]<\/small>\u00a0<span title=\"6:18 - 6:29\" data-start=\"00:06:18.302\" data-end=\"00:06:28.961\" data-spk=\"1\" data-label=\"Scot\">And then oh yeah also Facebook did pretty well and you know they\u2019re definitely through the worst of the Privacy changes that Apple put out\u00a0<\/span><span title=\"6:29 - 6:35\" data-start=\"00:06:28.908\" data-end=\"00:06:34.784\" data-spk=\"1\" data-label=\"Scot\">and they have an approach to AI that is an open source one so they\u2019re basically saying\u00a0<\/span><span title=\"6:35 - 6:48\" data-start=\"00:06:34.664\" data-end=\"00:06:47.529\" data-spk=\"1\" data-label=\"Scot\">hey we\u2019re going to integrate this in our products and what we build we\u2019re going to put out there kind of almost scorched Earth in a way saying why don\u2019t we just open source this thing and maybe that will slow down our competitors who are going to use this to\u00a0<\/span><span title=\"6:47 - 6:56\" data-start=\"00:06:47.416\" data-end=\"00:06:56.321\" data-spk=\"1\" data-label=\"Scot\">to generate their own revenue and because they don\u2019t have a cloud piece they don\u2019t and they\u2019re pure advertising it doesn\u2019t really,\u00a0<\/span><span title=\"6:56 - 7:06\" data-start=\"00:06:56.333\" data-end=\"00:07:06.007\" data-spk=\"1\" data-label=\"Scot\">Concord hurt them to do this so they\u2019re not making Cloud Revenue off of it but it\u2019s become a popular one and it\u2019s called llama in case anyone is it from there then,\u00a0<\/span><span title=\"7:06 - 7:07\" data-start=\"00:07:06.062\" data-end=\"00:07:07.275\" data-spk=\"1\" data-label=\"Scot\">okay\u00a0<\/span><span title=\"7:07 - 7:22\" data-start=\"00:07:07.125\" data-end=\"00:07:22.057\" data-spk=\"1\" data-label=\"Scot\">so just not to leave everyone in suspense because we usually talk about AWS kind of later in the Amazon update we\u2019re going to cover it first so the ended up having a really good ADB is showing so I would say people got kind of panicky and we\u2019re expecting it to be down and it kind of came in line.<\/span><\/p>\n<p><small>[7:22]<\/small>\u00a0<span title=\"7:22 - 7:31\" data-start=\"00:07:22.262\" data-end=\"00:07:31.383\" data-spk=\"1\" data-label=\"Scot\">But what that people excited was part of the talk track on the conference call Co jassy said that they\u2019re winning some\u00a0<\/span><span title=\"7:31 - 7:39\" data-start=\"00:07:31.228\" data-end=\"00:07:38.769\" data-spk=\"1\" data-label=\"Scot\">big AI workloads they talked about some big deals had close towards the end of the quarter that we\u2019re pretty significant and what\u2019s happening is\u00a0<\/span><span title=\"7:39 - 7:48\" data-start=\"00:07:38.751\" data-end=\"00:07:48.263\" data-spk=\"1\" data-label=\"Scot\">as you know what\u2019s what a i chat gbt is trained on the broader internet and anything that they can throw into there.<\/span><\/p>\n<p><small>[7:49]<\/small>\u00a0<span title=\"7:49 - 7:53\" data-start=\"00:07:48.528\" data-end=\"00:07:53.076\" data-spk=\"1\" data-label=\"Scot\">And that\u2019s interesting but what\u2019s happening is corporations and.<\/span><br \/><span title=\"7:53 - 8:06\" data-start=\"00:07:53.203\" data-end=\"00:08:06.032\" data-spk=\"1\" data-label=\"Scot\">Both big corporations for internal use but then also other corporations they\u2019re wanting to train a large language model on their data and they also don\u2019t want that data to kind of leak into the broader\u00a0<\/span><span title=\"8:06 - 8:11\" data-start=\"00:08:05.972\" data-end=\"00:08:11.314\" data-spk=\"1\" data-label=\"Scot\">ecosystem so that\u2019s that\u2019s really benefiting Amazon because\u00a0<\/span><span title=\"8:11 - 8:24\" data-start=\"00:08:11.302\" data-end=\"00:08:24.155\" data-spk=\"1\" data-label=\"Scot\">it turns out a lot of the data that companies want to train these lme\u2019s are are already in AWS so instead of paying all this money to pull the data out of AWS and then synchronize it back into your LM\u00a0<\/span><span title=\"8:24 - 8:33\" data-start=\"00:08:24.083\" data-end=\"00:08:32.616\" data-spk=\"1\" data-label=\"Scot\">as as Amazon anticipated with this kind of open bring by0 LM model.<\/span><br \/><span title=\"8:33 - 8:43\" data-start=\"00:08:32.833\" data-end=\"00:08:43.312\" data-spk=\"1\" data-label=\"Scot\">People are bringing the LMS to them and using the data because it\u2019s already in AWS and it\u2019s easier for the llm to just kind of go right there and grab it versus moving the data around.<\/span><\/p>\n<p><small>[8:44]<\/small>\u00a0<span title=\"8:44 - 8:52\" data-start=\"00:08:43.871\" data-end=\"00:08:51.677\" data-spk=\"1\" data-label=\"Scot\">That may not make a lot of sense so let me give you kind of a random example let\u2019s say you\u2019re a big added see like I\u2019ll pick up,\u00a0<\/span><span title=\"8:52 - 9:01\" data-start=\"00:08:51.785\" data-end=\"00:09:01.405\" data-spk=\"1\" data-label=\"Scot\">this one called publicist they\u2019re out of France and most people haven\u2019t heard of them and let\u2019s say that that French Ad Agency wanted to save a bunch of money they could take like.<\/span><br \/><span title=\"9:02 - 9:07\" data-start=\"00:09:01.580\" data-end=\"00:09:06.669\" data-spk=\"1\" data-label=\"Scot\">Let\u2019s say 3:00 of content from like a podcast transcript or something like that.<\/span><br \/><span title=\"9:07 - 9:19\" data-start=\"00:09:06.952\" data-end=\"00:09:18.748\" data-spk=\"1\" data-label=\"Scot\">And they could use that content let\u2019s say someone of their company like a detailed digital retail payment strategy vice president general manager type person with a big crazy title like that.<\/span><br \/><span title=\"9:19 - 9:26\" data-start=\"00:09:18.970\" data-end=\"00:09:26.385\" data-spk=\"1\" data-label=\"Scot\">They could put that data out there and run an llm on day ws and train that data on it.<\/span><br \/><span title=\"9:27 - 9:34\" data-start=\"00:09:26.530\" data-end=\"00:09:33.836\" data-spk=\"1\" data-label=\"Scot\">The llm on that data and then they could have for example just picking something random they could have a retailgeek bye.<\/span><br \/><span title=\"9:34 - 9:44\" data-start=\"00:09:34.065\" data-end=\"00:09:44.016\" data-spk=\"1\" data-label=\"Scot\">That was basically as good as the human probably ninety percent so good enough but you know this thing could run 24\/7 you could actually\u00a0<\/span><span title=\"9:44 - 9:54\" data-start=\"00:09:43.932\" data-end=\"00:09:54.471\" data-spk=\"1\" data-label=\"Scot\">you could have as many of them you could clone it on two different processors after you get through the training mode and you were in D quote-unquote inference mode and it also doesn\u2019t take breaks it doesn\u2019t need,\u00a0<\/span><span title=\"9:55 - 9:58\" data-start=\"00:09:54.514\" data-end=\"00:09:58.479\" data-spk=\"1\" data-label=\"Scot\">Starbucks vanilla lattes constantly it doesn\u2019t have expense reports it just.<\/span><br \/><span title=\"9:59 - 10:08\" data-start=\"00:09:58.846\" data-end=\"00:10:08.316\" data-spk=\"1\" data-label=\"Scot\">Does its job and doesn\u2019t complain and doesn\u2019t ask for raises so that\u2019s that\u2019s a that\u2019s a use case that something like that would work did that make.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:08]<\/small>\u00a0<span title=\"10:08 - 10:11\" data-start=\"00:10:08.467\" data-end=\"00:10:10.822\" data-spk=\"0\" data-label=\"Jason\">Specific hypothetical there Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[10:11]<\/small>\u00a0<span title=\"10:11 - 10:14\" data-start=\"00:10:10.618\" data-end=\"00:10:14.271\" data-spk=\"1\" data-label=\"Scot\">Is randomly chosen just kind of picked it out of the are there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:14]<\/small>\u00a0<span title=\"10:14 - 10:19\" data-start=\"00:10:14.067\" data-end=\"00:10:19.421\" data-spk=\"0\" data-label=\"Jason\">It almost sounds like the more words in your title the more vulnerable you would be to AI disruption.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[10:20]<\/small>\u00a0<span title=\"10:20 - 10:34\" data-start=\"00:10:19.992\" data-end=\"00:10:34.486\" data-spk=\"1\" data-label=\"Scot\">I thought about that but it is does make sense because that\u2019s essentially more tokens for the AI to learn just like right there in your title you\u2019re basically asking for it if you\u2019re a robot Overlord you\u2019re kind of picking on who to go for a first I would look for large titles person.<\/span><br \/><span title=\"10:35 - 10:37\" data-start=\"00:10:34.631\" data-end=\"00:10:36.962\" data-spk=\"1\" data-label=\"Scot\">I don\u2019t know I don\u2019t know how their training these things.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:37]<\/small>\u00a0<span title=\"10:37 - 10:44\" data-start=\"00:10:36.704\" data-end=\"00:10:43.866\" data-spk=\"0\" data-label=\"Jason\">There I know you\u2019re the investment guy in our podcast but there\u2019s this investment theory that you don\u2019t you don\u2019t,\u00a0<\/span><span title=\"10:44 - 10:54\" data-start=\"00:10:43.933\" data-end=\"00:10:54.003\" data-spk=\"0\" data-label=\"Jason\">be the little guy chasing the big Trend that way you want to do is identify the secondary Trend and so in this scenario as soon as it seems like a i is ready to replace the the\u00a0<\/span><span title=\"10:54 - 10:59\" data-start=\"00:10:53.986\" data-end=\"00:10:59.117\" data-spk=\"0\" data-label=\"Jason\">blowhard Talking Heads everyone should short Starbucks seems like the.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[10:59]<\/small>\u00a0<span title=\"10:59 - 11:02\" data-start=\"00:10:58.817\" data-end=\"00:11:02.092\" data-spk=\"1\" data-label=\"Scot\">Mmm that\u2019s a good point yeah I hadn\u2019t thought about that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[11:02]<\/small>\u00a0<span title=\"11:02 - 11:14\" data-start=\"00:11:02.044\" data-end=\"00:11:14.122\" data-spk=\"0\" data-label=\"Jason\">Yeah because when I lose my job and can\u2019t afford those lattes I feel like something I would like I\u2019ll take some solace in knowing that you made some money on that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[11:14]<\/small>\u00a0<span title=\"11:14 - 11:26\" data-start=\"00:11:14.080\" data-end=\"00:11:26.146\" data-spk=\"1\" data-label=\"Scot\">Yeah they\u2019ll be like on their conference call we\u2019re still working on the data but we\u2019ve isolated it to this to block window in Chicago and we\u2019re pretty sure we have an idea what\u2019s going on.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[11:26]<\/small>\u00a0<span title=\"11:26 - 11:29\" data-start=\"00:11:25.846\" data-end=\"00:11:29.216\" data-spk=\"0\" data-label=\"Jason\">I feel like my Starbucks footprint is a lot bigger than Chicago.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[11:29]<\/small>\u00a0<span title=\"11:29 - 11:34\" data-start=\"00:11:28.916\" data-end=\"00:11:34.366\" data-spk=\"1\" data-label=\"Scot\">Well you know the the core of your Bullseye answers is going around.<\/span><br \/><span title=\"11:36 - 11:50\" data-start=\"00:11:35.995\" data-end=\"00:11:50.062\" data-spk=\"1\" data-label=\"Scot\">Okay but in all seriousness this is a really interesting blurb from the call where they talked about their strategy gaining traction and they said there\u2019s multiple businesses are using their gen AI That\u2019s short for gender of a i.<\/span><br \/><span title=\"11:50 - 11:59\" data-start=\"00:11:50.195\" data-end=\"00:11:58.961\" data-spk=\"1\" data-label=\"Scot\">Apps on AWS including Adidas people in our European list listeners I think they call it a deed us but I\u2019m here in America we call,\u00a0<\/span><span title=\"11:59 - 12:05\" data-start=\"00:11:59.040\" data-end=\"00:12:05.043\" data-spk=\"1\" data-label=\"Scot\">here in South the southeast caught Adidas booking.com and United Airlines.<\/span><br \/><span title=\"12:05 - 12:11\" data-start=\"00:12:05.205\" data-end=\"00:12:11.460\" data-spk=\"1\" data-label=\"Scot\">And while Jenny eyes Revenue contribution remains small management suggested Revenue quote compares favorably.<\/span><br \/><span title=\"12:12 - 12:21\" data-start=\"00:12:11.665\" data-end=\"00:12:20.937\" data-spk=\"1\" data-label=\"Scot\">To some of the other leading providers and this is this is interesting because Amazon\u2019s always mum\u2019s on revealing anything until the SEC forces them to break out stuff like,\u00a0<\/span><span title=\"12:21 - 12:28\" data-start=\"00:12:20.943\" data-end=\"00:12:27.751\" data-spk=\"1\" data-label=\"Scot\">for the longest time we didn\u2019t know at AWS was then we didn\u2019t know what ads were and then they became material enough they had to break them out so\u00a0<\/span><span title=\"12:28 - 12:35\" data-start=\"00:12:27.739\" data-end=\"00:12:34.835\" data-spk=\"1\" data-label=\"Scot\">so Amazon under Bezos would never have said those words I\u2019ve like even hinting about what\u2019s going on.<\/span><\/p>\n<p><small>[12:35]<\/small>\u00a0<span title=\"12:35 - 12:46\" data-start=\"00:12:35.088\" data-end=\"00:12:46.145\" data-spk=\"1\" data-label=\"Scot\">But kind of is interesting because there\u2019s a new sheriff in town and also it shows you how important it is that they let everyone know that they are not falling behind and that their room new quote-unquote compares favorably\u00a0<\/span><span title=\"12:46 - 12:47\" data-start=\"00:12:46.067\" data-end=\"00:12:46.950\" data-spk=\"1\" data-label=\"Scot\">with other\u00a0<\/span><span title=\"12:47 - 13:00\" data-start=\"00:12:46.938\" data-end=\"00:13:00.086\" data-spk=\"1\" data-label=\"Scot\">other Cloud providers obviously they\u2019re talking about Azure once Wall Street analyst I did it is back of the napkin and he kind of said all right I think that they\u2019re telling us this is always funny because it\u2019s like six degrees of.<\/span><br \/><span title=\"13:00 - 13:14\" data-start=\"00:13:00.242\" data-end=\"00:13:13.906\" data-spk=\"1\" data-label=\"Scot\">You know separation so who knows but they basically inferred what they were trying to say reading the tea leaves was that it\u2019s about a 400 million-dollar business and already two percentage points of AWS Revenue.<\/span><br \/><span title=\"13:14 - 13:29\" data-start=\"00:13:14.063\" data-end=\"00:13:28.539\" data-spk=\"1\" data-label=\"Scot\">Which was basically zero six months ago so that\u2019s that that is kind of an interesting thing that came out of nowhere and is already a 400 million quarterly business so that means it\u2019s a 1.6 billion annualized run rate business.<\/span><\/p>\n<p><small>[13:29]<\/small>\u00a0<span title=\"13:29 - 13:39\" data-start=\"00:13:28.695\" data-end=\"00:13:38.676\" data-spk=\"1\" data-label=\"Scot\">If they\u2019re reading the tea leaves right on that so that was the AI part so I thought I\u2019d be important for us to get that out because that was kind of like the new cycle really centered around that,\u00a0<\/span><span title=\"13:39 - 13:46\" data-start=\"00:13:38.766\" data-end=\"00:13:46.007\" data-spk=\"1\" data-label=\"Scot\">and it is interesting you know you and I are watching this very closely there are e-commerce ramifications you know there\u2019s all kinds of,\u00a0<\/span><span title=\"13:46 - 13:56\" data-start=\"00:13:46.092\" data-end=\"00:13:55.627\" data-spk=\"1\" data-label=\"Scot\">The Innovation here is so rapid it\u2019s hard to keep up with there\u2019s all kinds of a eyes for creating product detail pages and you know all kinds of,\u00a0<\/span><span title=\"13:56 - 14:07\" data-start=\"00:13:55.724\" data-end=\"00:14:07.135\" data-spk=\"1\" data-label=\"Scot\">e-commerce oriented support Bots and it\u2019s just like amazing a lot of AI applications for optimizing warehouses it\u2019s just like overwhelming how much is out there we\u2019re definitely in the,\u00a0<\/span><span title=\"14:07 - 14:16\" data-start=\"00:14:07.171\" data-end=\"00:14:16.209\" data-spk=\"1\" data-label=\"Scot\">tippy top of the hype curve and you know a lot of businesses are still sorting through all this but that was the that was the.<\/span><\/p>\n<p><small>[14:16]<\/small>\u00a0<span title=\"14:16 - 14:30\" data-start=\"00:14:16.395\" data-end=\"00:14:30.222\" data-spk=\"1\" data-label=\"Scot\">Dean on e-commerce retail side of things and non ads with that behind us the other big win for the quarter I thought you\u2019d want to kind of fill us in on was the advertising part what did you see there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[14:30]<\/small>\u00a0<span title=\"14:30 - 14:37\" data-start=\"00:14:30.300\" data-end=\"00:14:36.862\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah I want to jump into ads I do want to just say quickly it\u2019s interesting on the AWS because\u00a0<\/span><span title=\"14:37 - 14:48\" data-start=\"00:14:36.748\" data-end=\"00:14:48.171\" data-spk=\"0\" data-label=\"Jason\">they posted solid numbers they posted 12 percent growth for AWS and they announced that they won the whole dialogue was about all these AI workloads that you just covered but\u00a0<\/span><span title=\"14:48 - 14:56\" data-start=\"00:14:48.087\" data-end=\"00:14:56.403\" data-spk=\"0\" data-label=\"Jason\">they haven\u2019t recognized much of the revenue from all of these new AI workload wins yet so the this 12% growth feels like.<\/span><br \/><span title=\"14:57 - 15:05\" data-start=\"00:14:56.836\" data-end=\"00:15:05.092\" data-spk=\"0\" data-label=\"Jason\">Kind of a win based on the Legacy Cloud business even before you start to factor in all this new traction they\u2019re getting,\u00a0<\/span><span title=\"15:05 - 15:13\" data-start=\"00:15:05.201\" data-end=\"00:15:13.223\" data-spk=\"0\" data-label=\"Jason\">I\u2019m AI workload so so that does seem interesting but I just want to reiterate what you started out by saying which is,\u00a0<\/span><span title=\"15:13 - 15:22\" data-start=\"00:15:13.307\" data-end=\"00:15:22.182\" data-spk=\"0\" data-label=\"Jason\">the the bed at Amazon is that you\u2019re going to want to bring the llm to your data and not that you\u2019re going to want to bring your data to the llm and that,\u00a0<\/span><span title=\"15:22 - 15:23\" data-start=\"00:15:22.279\" data-end=\"00:15:23.414\" data-spk=\"0\" data-label=\"Jason\">intuitively.<\/span><\/p>\n<p><small>[15:24]<\/small>\u00a0<span title=\"15:24 - 15:32\" data-start=\"00:15:23.949\" data-end=\"00:15:32.452\" data-spk=\"0\" data-label=\"Jason\">Makes a lot of sense so it seems like investors were always pretty happy with their the AI Cloud case that they made.<\/span><br \/><span title=\"15:33 - 15:36\" data-start=\"00:15:32.638\" data-end=\"00:15:35.684\" data-spk=\"0\" data-label=\"Jason\">Um so that being said.<\/span><br \/><span title=\"15:36 - 15:50\" data-start=\"00:15:35.931\" data-end=\"00:15:50.347\" data-spk=\"0\" data-label=\"Jason\">As far as I\u2019m concerned an even bigger win for them was the ad business so so they generated 12 billion dollars in ad revenue for the quarter that\u2019s up 26 percent versus Q3 of last year.<\/span><br \/><span title=\"15:50 - 16:00\" data-start=\"00:15:50.467\" data-end=\"00:15:59.991\" data-spk=\"0\" data-label=\"Jason\">Year-to-date that means they\u2019re had businesses up 23% from the year before so you know we\u2019re comparing that to like the 11 or 12 percent growth they get on AWS.<\/span><br \/><span title=\"16:00 - 16:01\" data-start=\"00:16:00.142\" data-end=\"00:16:01.061\" data-spk=\"0\" data-label=\"Jason\">Um<\/span><\/p>\n<p><small>[16:02]<\/small>\u00a0<span title=\"16:02 - 16:15\" data-start=\"00:16:01.698\" data-end=\"00:16:15.212\" data-spk=\"0\" data-label=\"Jason\">The ad business grew 21 percent last year so it\u2019s grown 23 percent this year that impugns depending on how you factor in seasonality like a 46 to 50 billion dollar run rate for the ad business right now,\u00a0<\/span><span title=\"16:15 - 16:21\" data-start=\"00:16:15.273\" data-end=\"00:16:21.293\" data-spk=\"0\" data-label=\"Jason\">so if you take a conservative estimate for the the the,\u00a0<\/span><span title=\"16:21 - 16:30\" data-start=\"00:16:21.396\" data-end=\"00:16:29.634\" data-spk=\"0\" data-label=\"Jason\">margin rate on that business that\u2019s generating 2728 billion dollars worth of ibadah for Amazon which is a huge.<\/span><br \/><span title=\"16:30 - 16:34\" data-start=\"00:16:29.773\" data-end=\"00:16:34.003\" data-spk=\"0\" data-label=\"Jason\">Huge business and much more profitable than a WS by the way.<\/span><br \/><span title=\"16:34 - 16:43\" data-start=\"00:16:34.279\" data-end=\"00:16:42.577\" data-spk=\"0\" data-label=\"Jason\">So the ad business was very robust and a couple of injured interesting takeaways.<\/span><br \/><span title=\"16:43 - 16:56\" data-start=\"00:16:42.806\" data-end=\"00:16:56.242\" data-spk=\"0\" data-label=\"Jason\">Amazon is adding more and more video properties they have Thursday Night Football you know they announced that they\u2019re going to start embedding ads and Amazon Prime and they\u2019ll have a premium offering to bypass Those ads.<\/span><br \/><span title=\"16:56 - 17:00\" data-start=\"00:16:56.363\" data-end=\"00:17:00.022\" data-spk=\"0\" data-label=\"Jason\">So there\u2019s a lot of opportunity for.<\/span><br \/><span title=\"17:00 - 17:09\" data-start=\"00:17:00.142\" data-end=\"00:17:08.819\" data-spk=\"0\" data-label=\"Jason\">Kind of top of the funnel linear programming ads at Amazon none of that is in this.<\/span><\/p>\n<p><small>[17:09]<\/small>\u00a0<span title=\"17:09 - 17:19\" data-start=\"00:17:09.246\" data-end=\"00:17:19.227\" data-spk=\"0\" data-label=\"Jason\">12 billion dollar number right now or very little like all of the potential they\u2019ve they talked about for this for these non Commerce ads.<\/span><br \/><span title=\"17:19 - 17:24\" data-start=\"00:17:19.365\" data-end=\"00:17:24.359\" data-spk=\"0\" data-label=\"Jason\">Is all sort of incremental the weather getting right now.<\/span><br \/><span title=\"17:25 - 17:31\" data-start=\"00:17:24.515\" data-end=\"00:17:30.896\" data-spk=\"0\" data-label=\"Jason\">At the moment the vast majority of all Amazon\u2019s ads are bottom of the funnel the the sponsored product listing is by far the most.<\/span><br \/><span title=\"17:31 - 17:39\" data-start=\"00:17:31.125\" data-end=\"00:17:39.363\" data-spk=\"0\" data-label=\"Jason\">Popular ad that that\u2019s growing particularly well and with the particular mix of economic headwinds we have at the moment,\u00a0<\/span><span title=\"17:39 - 17:50\" data-start=\"00:17:39.460\" data-end=\"00:17:50.161\" data-spk=\"0\" data-label=\"Jason\">a lot of advertising is Shifting to bottom of the funnel people are less interested in investing in awareness and more interested in investing in sales and Amazon turns out to be,\u00a0<\/span><span title=\"17:50 - 17:57\" data-start=\"00:17:50.198\" data-end=\"00:17:56.741\" data-spk=\"0\" data-label=\"Jason\">the best destination to take that that those dollars to put them into digital ads that generate.<\/span><br \/><span title=\"17:57 - 18:06\" data-start=\"00:17:56.916\" data-end=\"00:18:05.623\" data-spk=\"0\" data-label=\"Jason\">Bottom of the funnel results so this quarter everyone was really interested to hear from the advertising companies,\u00a0<\/span><span title=\"18:06 - 18:16\" data-start=\"00:18:05.719\" data-end=\"00:18:16.475\" data-spk=\"0\" data-label=\"Jason\">to see if advertisers were going to be cutting back right and so you know you mentioned meta had their their earnings call Google had their earnings call Facebook I\u2019m sorry.<\/span><\/p>\n<p><small>[18:17]<\/small>\u00a0<span title=\"18:17 - 18:26\" data-start=\"00:18:16.980\" data-end=\"00:18:25.867\" data-spk=\"0\" data-label=\"Jason\">Snap had their their earnings call and ads were uniformly up across everyone\u2019s earning so metas ads were up 23%,\u00a0<\/span><span title=\"18:26 - 18:33\" data-start=\"00:18:25.880\" data-end=\"00:18:32.874\" data-spk=\"0\" data-label=\"Jason\">Google\u2019s ads were up 11% Google broke out YouTube ads which were up 12% snap ads were at 5%.<\/span><br \/><span title=\"18:33 - 18:45\" data-start=\"00:18:33.001\" data-end=\"00:18:44.568\" data-spk=\"0\" data-label=\"Jason\">But nobody\u2019s ads were up as much the 26% that Amazon\u2019s were and nobody has had the consistently rapid add growth that Amazon\u2019s had the last three quarters.<\/span><br \/><span title=\"18:45 - 18:51\" data-start=\"00:18:44.760\" data-end=\"00:18:50.913\" data-spk=\"0\" data-label=\"Jason\">Um so the economic headwinds like do not appear to be.<\/span><br \/><span title=\"18:51 - 18:59\" data-start=\"00:18:51.214\" data-end=\"00:18:58.545\" data-spk=\"0\" data-label=\"Jason\">Putting a huge crimp in the the digital advertising business and they appear to be disproportionately benefiting,\u00a0<\/span><span title=\"18:59 - 19:03\" data-start=\"00:18:58.635\" data-end=\"00:19:02.559\" data-spk=\"0\" data-label=\"Jason\">Amazon and so then you go wait next quarter\u00a0<\/span><span title=\"19:03 - 19:14\" data-start=\"00:19:02.541\" data-end=\"00:19:13.856\" data-spk=\"0\" data-label=\"Jason\">they\u2019re going to be selling ads on all of their video programming and that could easily add another 5 billion dollars just for in to this this annual run rate so.<\/span><br \/><span title=\"19:14 - 19:20\" data-start=\"00:19:14.013\" data-end=\"00:19:19.805\" data-spk=\"0\" data-label=\"Jason\">A lot of green lights in the Amazon ad business.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[19:21]<\/small>\u00a0<span title=\"19:21 - 19:31\" data-start=\"00:19:20.622\" data-end=\"00:19:31.006\" data-spk=\"1\" data-label=\"Scot\">The I\u2019m not a huge Sports person but you mentioned Thursday night football and have you seen and kind of marrying this back today I think if you seem Prime Vision have you played with them.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[19:31]<\/small>\u00a0<span title=\"19:31 - 19:33\" data-start=\"00:19:31.343\" data-end=\"00:19:33.085\" data-spk=\"0\" data-label=\"Jason\">I have yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[19:33]<\/small>\u00a0<span title=\"19:33 - 19:39\" data-start=\"00:19:32.887\" data-end=\"00:19:39.316\" data-spk=\"1\" data-label=\"Scot\">So for listeners what they do is on Thursday Night Football if you watch from\u00a0<\/span><span title=\"19:39 - 19:43\" data-start=\"00:19:39.311\" data-end=\"00:19:43.120\" data-spk=\"1\" data-label=\"Scot\">actually I do it on my Apple TV and I\u2019m in the Prime video app.<\/span><br \/><span title=\"19:43 - 19:52\" data-start=\"00:19:43.241\" data-end=\"00:19:52.104\" data-spk=\"1\" data-label=\"Scot\">And then you can it takes you to the standard broadcast just like every other thing but you can go in and then you hit down arrow and you can select a different broadcast which is,\u00a0<\/span><span title=\"19:52 - 19:53\" data-start=\"00:19:52.140\" data-end=\"00:19:53.450\" data-spk=\"1\" data-label=\"Scot\">Prime vision\u00a0<\/span><span title=\"19:53 - 20:08\" data-start=\"00:19:53.306\" data-end=\"00:20:07.955\" data-spk=\"1\" data-label=\"Scot\">and what it does they\u2019ve added feature since they did it they started it they\u2019ve added all these new AI features that are really amazing so during a pass play they\u2019ll show you the most likely Target they put like a Madden asked Circle in real time under the player and,\u00a0<\/span><span title=\"20:08 - 20:15\" data-start=\"00:20:08.070\" data-end=\"00:20:15.118\" data-spk=\"1\" data-label=\"Scot\">he\u2019ll flash like green or something if he\u2019s a possible Target on the defense though they\u2019ll show a potential Blitzer.<\/span><br \/><span title=\"20:15 - 20:27\" data-start=\"00:20:15.257\" data-end=\"00:20:27.407\" data-spk=\"1\" data-label=\"Scot\">They\u2019ll show you fourth-down probabilities in real time you know and it\u2019s just amazing they\u2019ve added tons of features of that since I\u2019ve been watching it and I find it like really adds a ton to the game too.<\/span><br \/><span title=\"20:28 - 20:35\" data-start=\"00:20:27.972\" data-end=\"00:20:34.678\" data-spk=\"1\" data-label=\"Scot\">Kind of see you can see the strategy in real time mostly broadcasters you know they\u2019ll talk about it like Tony Rome or something\u00a0<\/span><span title=\"20:34 - 20:44\" data-start=\"00:20:34.480\" data-end=\"00:20:44.467\" data-spk=\"1\" data-label=\"Scot\">but it\u2019s way after the play after they\u2019ve had time to put together animation this is doing it all in real time it\u2019s just mind-blowing the amount of compute it must be thrown at that and you know\u00a0<\/span><span title=\"20:44 - 20:49\" data-start=\"00:20:44.353\" data-end=\"00:20:49.232\" data-spk=\"1\" data-label=\"Scot\">I think it\u2019s a it could change the way you think about sports and in a really interesting way.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[20:49]<\/small>\u00a0<span title=\"20:49 - 20:54\" data-start=\"00:20:49.304\" data-end=\"00:20:54.189\" data-spk=\"0\" data-label=\"Jason\">Oh yeah increasingly it\u2019s a better experience watching the game at home then you can get in the stadium.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[20:54]<\/small>\u00a0<span title=\"20:54 - 20:57\" data-start=\"00:20:53.991\" data-end=\"00:20:56.719\" data-spk=\"1\" data-label=\"Scot\">Yeah the stadium doesn\u2019t do that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[20:56]<\/small>\u00a0<span title=\"20:56 - 21:07\" data-start=\"00:20:56.419\" data-end=\"00:21:06.616\" data-spk=\"0\" data-label=\"Jason\">They side note for soccer at the World Cup they actually did but you have to watch the whole game like through a are on your phone.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[21:05]<\/small>\u00a0<span title=\"21:05 - 21:09\" data-start=\"00:21:05.481\" data-end=\"00:21:09.290\" data-spk=\"1\" data-label=\"Scot\">Let\u2019s see you at the stadium watching the game on your phone.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[21:09]<\/small>\u00a0<span title=\"21:09 - 21:18\" data-start=\"00:21:09.092\" data-end=\"00:21:17.721\" data-spk=\"0\" data-label=\"Jason\">Yeah I mean and it was cool right like saying same sort of thing like it\u2019s overlaying all this real-time stats and probability was amazing.<\/span><br \/><span title=\"21:18 - 21:26\" data-start=\"00:21:18.370\" data-end=\"00:21:25.557\" data-spk=\"0\" data-label=\"Jason\">Like it\u2019s not a very good experience to like hold your phone up and have your camera on the whole time to sort of get all these stats and so.<\/span><br \/><span title=\"21:31 - 21:40\" data-start=\"00:21:30.767\" data-end=\"00:21:40.279\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah side no Thursday Night Football is the bane of my existence because I do play Fantasy Football and I never have my act together to have my lineups all set before Thursday night so,\u00a0<\/span><span title=\"21:40 - 21:47\" data-start=\"00:21:40.321\" data-end=\"00:21:46.721\" data-spk=\"0\" data-label=\"Jason\">usually the game starts and I have to pray that I don\u2019t have any super important players that I fail the start and then I can enjoy the game.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[21:46]<\/small>\u00a0<span title=\"21:46 - 21:53\" data-start=\"00:21:46.499\" data-end=\"00:21:52.567\" data-spk=\"1\" data-label=\"Scot\">Okay understood anything else on Dad\u2019s.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[21:53]<\/small>\u00a0<span title=\"21:53 - 21:58\" data-start=\"00:21:52.718\" data-end=\"00:21:57.681\" data-spk=\"0\" data-label=\"Jason\">No I think that covers it pretty well on ads you know just.<\/span><br \/><span title=\"21:58 - 22:06\" data-start=\"00:21:57.922\" data-end=\"00:22:06.100\" data-spk=\"0\" data-label=\"Jason\">We\u2019ve we\u2019ve talked about a lot on the show but the overwhelming success Amazon\u2019s having with ads has this of course trickle-down effect that every other\u00a0<\/span><span title=\"22:06 - 22:14\" data-start=\"00:22:06.052\" data-end=\"00:22:14.296\" data-spk=\"0\" data-label=\"Jason\">player and commerce paste is trying to figure out how to monetize their their traffic and get their share and at the moment nobody\u2019s getting,\u00a0<\/span><span title=\"22:14 - 22:19\" data-start=\"00:22:14.333\" data-end=\"00:22:19.188\" data-spk=\"0\" data-label=\"Jason\">anything like Amazon\u2019s add,\u00a0<\/span><span title=\"22:19 - 22:32\" data-start=\"00:22:19.290\" data-end=\"00:22:31.981\" data-spk=\"0\" data-label=\"Jason\">Commerce ratio and of course the audience eyes is start dropping off really quick after Amazon right you know you get a lot less eyeballs at Walmart then you have it on Amazon and a lot less eyeballs it\u00a0<\/span><span title=\"22:32 - 22:38\" data-start=\"00:22:31.777\" data-end=\"00:22:38.272\" data-spk=\"0\" data-label=\"Jason\">Target then you have it Walmart and you know once you get smarter than that it starts getting real fragmented real fast.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[22:39]<\/small>\u00a0<span title=\"22:39 - 22:43\" data-start=\"00:22:38.579\" data-end=\"00:22:43.470\" data-spk=\"1\" data-label=\"Scot\">Yeah how do you were still there still even though that\u2019s a big number\u00a0<\/span><span title=\"22:43 - 22:57\" data-start=\"00:22:43.326\" data-end=\"00:22:56.510\" data-spk=\"1\" data-label=\"Scot\">they\u2019re still like way far away from Facebook right so so number one is Google by a really big margin and number two is Facebook and then it\u2019s Amazon and they\u2019re like way ahead of everyone else but they have to even though they\u2019re outpacing them,\u00a0<\/span><span title=\"22:57 - 23:01\" data-start=\"00:22:56.588\" data-end=\"00:23:00.554\" data-spk=\"1\" data-label=\"Scot\">a little bit it would be like decades before they caught up in my own remembering that right.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:00]<\/small>\u00a0<span title=\"23:00 - 23:13\" data-start=\"00:23:00.434\" data-end=\"00:23:13.395\" data-spk=\"0\" data-label=\"Jason\">I\u2019m not no I\u2019m not going to say decades it\u2019s an order of magnitude it\u2019s like 102 million 100 to 200 billion dollar annual run rates for those other guys and.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:13]<\/small>\u00a0<span title=\"23:13 - 23:15\" data-start=\"00:23:13.095\" data-end=\"00:23:14.826\" data-spk=\"1\" data-label=\"Scot\">But they\u2019re kind of getting to half right.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:15]<\/small>\u00a0<span title=\"23:15 - 23:23\" data-start=\"00:23:14.718\" data-end=\"00:23:23.328\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah they are like they there with like within 50 percent of Striking Distance of number two.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:23]<\/small>\u00a0<span title=\"23:23 - 23:30\" data-start=\"00:23:23.113\" data-end=\"00:23:29.722\" data-spk=\"1\" data-label=\"Scot\">Yeah if you had said that to us five years ago we would not have believed it I would I would not have seen how I\u2019ve been.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:30]<\/small>\u00a0<span title=\"23:30 - 23:43\" data-start=\"00:23:29.825\" data-end=\"00:23:43.266\" data-spk=\"0\" data-label=\"Jason\">Yeah I\u2019ve been playing that what would you have thought five years ago game a lot and you you know you talked about who all the winners are in AI if you said five years ago the AI is going to become a huge thing what company is going to win like you we would have all been on Google.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:43]<\/small>\u00a0<span title=\"23:43 - 23:55\" data-start=\"00:23:43.387\" data-end=\"00:23:55.363\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah or apple or it would not have been startup called open air that was nonprofit that flip to profit no one saw that coming including Elon Musk yeah.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[23:55]<\/small>\u00a0<span title=\"23:55 - 23:59\" data-start=\"00:23:55.063\" data-end=\"00:23:58.590\" data-spk=\"0\" data-label=\"Jason\">And by opening I you mean Nvidia but yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[23:59]<\/small>\u00a0<span title=\"23:59 - 24:07\" data-start=\"00:23:58.524\" data-end=\"00:24:07.309\" data-spk=\"1\" data-label=\"Scot\">One tidbit I saw on ads I love the leak read the Wall Street reports and they largely talked about the same data but a lot of them\u00a0<\/span><span title=\"24:07 - 24:14\" data-start=\"00:24:07.273\" data-end=\"00:24:13.552\" data-spk=\"1\" data-label=\"Scot\">are good at very good at modeling and they can when Amazon doesn\u2019t tell them something like they don\u2019t break out\u00a0<\/span><span title=\"24:13 - 24:19\" data-start=\"00:24:13.475\" data-end=\"00:24:18.942\" data-spk=\"1\" data-label=\"Scot\">they break out the revenue for ads but they don\u2019t break out the profit\u00a0<\/span><span title=\"24:19 - 24:29\" data-start=\"00:24:18.835\" data-end=\"00:24:29.302\" data-spk=\"1\" data-label=\"Scot\">so it kind of gets swept up into this larger number but then they give you enough pieces you can kind of back into it so one of my favorite analyst he\u2019s a friend of the show Scott Devitt\u00a0<\/span><span title=\"24:29 - 24:37\" data-start=\"00:24:29.140\" data-end=\"00:24:36.519\" data-spk=\"1\" data-label=\"Scot\">he modeled back through there and to your point he basically said that the ad business has a 60%,\u00a0<\/span><span title=\"24:37 - 24:46\" data-start=\"00:24:36.579\" data-end=\"00:24:46.217\" data-spk=\"1\" data-label=\"Scot\">EB de margin so net margin of 60 percent which is basically like just money raining at this like Google\u2019s business model which I guess makes sense because\u00a0<\/span><span title=\"24:46 - 24:47\" data-start=\"00:24:46.140\" data-end=\"00:24:46.758\" data-spk=\"1\" data-label=\"Scot\">Bass.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[24:46]<\/small>\u00a0<span title=\"24:46 - 24:48\" data-start=\"00:24:46.458\" data-end=\"00:24:47.978\" data-spk=\"0\" data-label=\"Jason\">Is it is good.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[24:48]<\/small>\u00a0<span title=\"24:48 - 24:50\" data-start=\"00:24:47.678\" data-end=\"00:24:50.418\" data-spk=\"1\" data-label=\"Scot\">Yeah because it is Google\u2019s business model\u00a0<\/span><span title=\"24:50 - 24:59\" data-start=\"00:24:50.322\" data-end=\"00:24:58.728\" data-spk=\"1\" data-label=\"Scot\">and this ties into you know you know more about this government stuff than I do but Google\u2019s in a pretty nasty fight with the FTC,\u00a0<\/span><span title=\"24:59 - 25:03\" data-start=\"00:24:58.813\" data-end=\"00:25:02.568\" data-spk=\"1\" data-label=\"Scot\">or the DJ I can\u2019t remember some government Bureau important\u00a0<\/span><span title=\"25:02 - 25:19\" data-start=\"00:25:02.412\" data-end=\"00:25:18.805\" data-spk=\"1\" data-label=\"Scot\">entity that that is claiming they have a monopoly on search and they\u2019re basically pointing over here and saying look at these Amazon guys they\u2019re closing in on us pretty quick and they always reference those stats that show you know like more than half the people start product searches and those online.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[25:19]<\/small>\u00a0<span title=\"25:19 - 25:32\" data-start=\"00:25:18.949\" data-end=\"00:25:32.247\" data-spk=\"0\" data-label=\"Jason\">Yeah no it\u2019s super interesting I Scott Devin is way better at Financial models than me but I actually think he might be under estimating the profitability and part of it is.<\/span><br \/><span title=\"25:33 - 25:33\" data-start=\"00:25:32.524\" data-end=\"00:25:33.172\" data-spk=\"0\" data-label=\"Jason\">It\u2019s.<\/span><br \/><span title=\"25:34 - 25:45\" data-start=\"00:25:33.599\" data-end=\"00:25:45.425\" data-spk=\"0\" data-label=\"Jason\">There\u2019s a lot of room for gray area like if you think about the the Amazon business it\u2019s super fascinating you know the number one digital Advertiser in the United States of America is you know who buys more ads than anyone else.<\/span><br \/><span title=\"25:47 - 25:47\" data-start=\"00:25:46.729\" data-end=\"00:25:47.492\" data-spk=\"0\" data-label=\"Jason\">Amazon.<\/span><br \/><span title=\"25:48 - 26:01\" data-start=\"00:25:47.829\" data-end=\"00:26:00.994\" data-spk=\"0\" data-label=\"Jason\">18 billion dollars a year of ads they buy just from Google so they buy 18 billion dollars worth of eyeballs from Google they use those eyeballs to sell a bunch of stuff that they make money on and then\u00a0<\/span><span title=\"26:01 - 26:06\" data-start=\"00:26:00.959\" data-end=\"00:26:05.603\" data-spk=\"0\" data-label=\"Jason\">they sell 50 billion dollars are the pants to those eyeballs.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[26:05]<\/small>\u00a0<span title=\"26:05 - 26:07\" data-start=\"00:26:05.303\" data-end=\"00:26:06.577\" data-spk=\"1\" data-label=\"Scot\">Ticket Arbitrage.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[26:06]<\/small>\u00a0<span title=\"26:06 - 26:12\" data-start=\"00:26:06.295\" data-end=\"00:26:11.901\" data-spk=\"0\" data-label=\"Jason\">It\u2019s amazing eyeball Arbitrage and you know it\u2019s.<\/span><br \/><span title=\"26:13 - 26:27\" data-start=\"00:26:12.550\" data-end=\"00:26:27.128\" data-spk=\"0\" data-label=\"Jason\">So how much of that acquisition cost are you factoring into the profitability of the ad business versus the like I would argue that these are not separated bubble businesses as much as ever wants to talk about ads as a separate business\u00a0<\/span><span title=\"26:27 - 26:33\" data-start=\"00:26:27.026\" data-end=\"00:26:32.945\" data-spk=\"0\" data-label=\"Jason\">to me it only exists because you have all this traffic for Commerce and it\u2019s\u00a0<\/span><span title=\"26:33 - 26:39\" data-start=\"00:26:32.825\" data-end=\"00:26:39.278\" data-spk=\"0\" data-label=\"Jason\">it\u2019s a core part of the the Commerce math at this point but we shall.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[26:39]<\/small>\u00a0<span title=\"26:39 - 26:47\" data-start=\"00:26:38.978\" data-end=\"00:26:47.457\" data-spk=\"1\" data-label=\"Scot\">Yeah when we did our instacart coverage of this one now instacart been public for a while and you look at their numbers they\u2019re basically only being\u00a0<\/span><span title=\"26:47 - 27:01\" data-start=\"00:26:47.349\" data-end=\"00:27:01.145\" data-spk=\"1\" data-label=\"Scot\">the whole instacart business is being valued a zero except for that so they\u2019re basically trading like an ad company so all of Wall Street said okay that grocery part is kind of like that yeah is there we\u2019ll put it in like you know.<\/span><\/p>\n<p><small>[27:02]<\/small>\u00a0<span title=\"27:02 - 27:12\" data-start=\"00:27:01.602\" data-end=\"00:27:12.490\" data-spk=\"1\" data-label=\"Scot\">A hundred million dollars and then the ad business is like worth date hundred million dollar ad businesses where they gave it a really nice multiple of like 5x so that\u2019s interesting I\u2019m sure,\u00a0<\/span><span title=\"27:13 - 27:18\" data-start=\"00:27:12.515\" data-end=\"00:27:18.049\" data-spk=\"1\" data-label=\"Scot\">you\u2019re going to spoiler alert you\u2019re going to see a lot more ads on Insta guard the\u00a0<\/span><span title=\"27:18 - 27:27\" data-start=\"00:27:17.917\" data-end=\"00:27:27.026\" data-spk=\"1\" data-label=\"Scot\">yeah a lot of people there is a negative and you know no one ever talks about this but a lot of people and this usually comes from a Amazon sellers and they always have kind of a love hate hate hate hate\u00a0<\/span><span title=\"27:27 - 27:29\" data-start=\"00:27:26.894\" data-end=\"00:27:28.979\" data-spk=\"1\" data-label=\"Scot\">hate relationship with Amazon\u00a0<\/span><span title=\"27:29 - 27:45\" data-start=\"00:27:28.829\" data-end=\"00:27:44.837\" data-spk=\"1\" data-label=\"Scot\">you know a lot of them would say and I hear this from consumers that the customer experience is the user experience is degraded on Amazon because there\u2019s just so many darn ads now you know the and I see it too if I\u2019m looking for a specific thing I\u2019m kind of like a dad at okay that\u2019s what I was looking for\u00a0<\/span><span title=\"27:45 - 27:53\" data-start=\"00:27:44.669\" data-end=\"00:27:53.220\" data-spk=\"1\" data-label=\"Scot\">at some point there is cannibalization there and you know what we don\u2019t know is what did they lose from\u00a0<\/span><span title=\"27:53 - 28:03\" data-start=\"00:27:53.190\" data-end=\"00:28:02.606\" data-spk=\"1\" data-label=\"Scot\">yeah doing this like was their product they didn\u2019t sell because people couldn\u2019t find it or we\u2019ll never really know that but you know kind of hope they\u2019re smart enough to figure\u00a0<\/span><span title=\"28:03 - 28:11\" data-start=\"00:28:02.528\" data-end=\"00:28:10.526\" data-spk=\"1\" data-label=\"Scot\">that calculus Alden make it a huge net positive versus the cannibalization getting close to the ebitda contribution.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:10]<\/small>\u00a0<span title=\"28:10 - 28:25\" data-start=\"00:28:10.460\" data-end=\"00:28:25.050\" data-spk=\"0\" data-label=\"Jason\">Oh yeah no I think two things like there definitely is an impact on customer experience and every retailer that gets into this space has a different philosophy about that and Amazon\u2019s appears to be\u00a0<\/span><span title=\"28:25 - 28:34\" data-start=\"00:28:24.888\" data-end=\"00:28:33.907\" data-spk=\"0\" data-label=\"Jason\">the monetization is just worth it but you know you think about everyone other retailers that are not waiting and quite so hard,\u00a0<\/span><span title=\"28:34 - 28:46\" data-start=\"00:28:33.968\" data-end=\"00:28:45.961\" data-spk=\"0\" data-label=\"Jason\">are trying to balance that and then the new interesting thing is if you\u2019re any retailer other than Amazon where all your eyeballs really are is not on your website it\u2019s in your store right and but you go we\u2019ll wait a minute,\u00a0<\/span><span title=\"28:46 - 28:56\" data-start=\"00:28:46.034\" data-end=\"00:28:55.528\" data-spk=\"0\" data-label=\"Jason\">the these disruptions that people might tolerate as digital disruptions on a website they may not top you know nobody wants to junk a fi,\u00a0<\/span><span title=\"28:56 - 29:03\" data-start=\"00:28:55.636\" data-end=\"00:29:02.775\" data-spk=\"0\" data-label=\"Jason\">um a physical store experience with a bunch of you know make it feel like you walked into Times Square every time you walk into,\u00a0<\/span><span title=\"29:03 - 29:13\" data-start=\"00:29:02.871\" data-end=\"00:29:12.533\" data-spk=\"0\" data-label=\"Jason\">retail store so there\u2019s all this interesting calculus on where everyone should land on that the other interesting thing to me is for a while there was a.<\/span><\/p>\n<p><small>[29:13]<\/small>\u00a0<span title=\"29:13 - 29:23\" data-start=\"00:29:12.690\" data-end=\"00:29:23.284\" data-spk=\"0\" data-label=\"Jason\">An opportunity for the best practitioners to get outside return so there was a subset of all those Amazon sellers that were really good at the Amazon ad,\u00a0<\/span><span title=\"29:23 - 29:29\" data-start=\"00:29:23.374\" data-end=\"00:29:29.191\" data-spk=\"0\" data-label=\"Jason\">execution right and they did their smart about where they put their bids they were smarter about\u00a0<\/span><span title=\"29:29 - 29:43\" data-start=\"00:29:29.179\" data-end=\"00:29:42.855\" data-spk=\"0\" data-label=\"Jason\">the attributes they put in their ad there are smarter about the creative they made for their ad and they could get outside Returns versus other sellers on Amazon but the first Trends you mentioned the AI affectation of this whole business.<\/span><\/p>\n<p><small>[29:43]<\/small>\u00a0<span title=\"29:43 - 29:46\" data-start=\"00:29:43.415\" data-end=\"00:29:46.455\" data-spk=\"0\" data-label=\"Jason\">Has sort of made the best practices,\u00a0<\/span><span title=\"29:47 - 30:00\" data-start=\"00:29:46.527\" data-end=\"00:29:59.897\" data-spk=\"0\" data-label=\"Jason\">dummy proof right and so now you know you just hand a product shot to Amazon and it makes the ad for you and you turn over the bidding strategy to Amazon and it optimizes your bidding for you and so it\u2019s squeezing\u00a0<\/span><span title=\"30:00 - 30:09\" data-start=\"00:29:59.741\" data-end=\"00:30:08.893\" data-spk=\"0\" data-label=\"Jason\">more of the potential profit like out of all of these these other businesses that are built on top of Amazon because it\u2019s,\u00a0<\/span><span title=\"30:09 - 30:12\" data-start=\"00:30:08.983\" data-end=\"00:30:12.011\" data-spk=\"0\" data-label=\"Jason\">kind of.<\/span><br \/><span title=\"30:12 - 30:21\" data-start=\"00:30:12.318\" data-end=\"00:30:21.217\" data-spk=\"0\" data-label=\"Jason\">Normalizing the the ad business to everyone and it just becomes a pure pay to pay like who\u2019s going to be the most for this eyeball.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:21]<\/small>\u00a0<span title=\"30:21 - 30:31\" data-start=\"00:30:20.917\" data-end=\"00:30:31.030\" data-spk=\"1\" data-label=\"Scot\">Yeah kind of supports your theory that maybe the Madonna\u2019s higher because they don\u2019t have a lot of people sitting there at adding images or something like would they used to do back in the olden days.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:31]<\/small>\u00a0<span title=\"30:31 - 30:35\" data-start=\"00:30:30.730\" data-end=\"00:30:34.858\" data-spk=\"0\" data-label=\"Jason\">Is that you used to need this thing called what is it called Ad Agency.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:35]<\/small>\u00a0<span title=\"30:35 - 30:41\" data-start=\"00:30:34.558\" data-end=\"00:30:41.269\" data-spk=\"1\" data-label=\"Scot\">Yeah good cut the if you can just get one of those Bots I discussed or just like you have a some a I do it for him.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:40]<\/small>\u00a0<span title=\"30:40 - 30:44\" data-start=\"00:30:40.399\" data-end=\"00:30:43.811\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah that was a funny example a few minutes ago.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:44]<\/small>\u00a0<span title=\"30:44 - 30:53\" data-start=\"00:30:43.511\" data-end=\"00:30:52.693\" data-spk=\"1\" data-label=\"Scot\">Unrelated news Jason is brushing up to c v so hit him up the\u00a0<\/span><span title=\"30:53 - 31:01\" data-start=\"00:30:52.627\" data-end=\"00:31:01.424\" data-spk=\"1\" data-label=\"Scot\">so just to zoom out to the big picture so so we kind of dove into the to topical things A to B Us \/ Ai and adds,\u00a0<\/span><span title=\"31:01 - 31:06\" data-start=\"00:31:01.460\" data-end=\"00:31:06.189\" data-spk=\"1\" data-label=\"Scot\">those together really causing Amazon to beat Revenue that\u00a0<\/span><span title=\"31:06 - 31:16\" data-start=\"00:31:06.087\" data-end=\"00:31:15.683\" data-spk=\"1\" data-label=\"Scot\">they came in about one percent higher than Revenue so it was kind of like a slight beat \/ meat but where they really exceeded oh and revenue came in at 143 billion\u00a0<\/span><span title=\"31:16 - 31:25\" data-start=\"00:31:15.564\" data-end=\"00:31:25.442\" data-spk=\"1\" data-label=\"Scot\">were they really crushed it was operating income and these two contributed to it but also retail did some interesting things that also\u00a0<\/span><span title=\"31:25 - 31:28\" data-start=\"00:31:25.334\" data-end=\"00:31:27.659\" data-spk=\"1\" data-label=\"Scot\">yeah I think dramatically helped\u00a0<\/span><span title=\"31:28 - 31:42\" data-start=\"00:31:27.654\" data-end=\"00:31:42.033\" data-spk=\"1\" data-label=\"Scot\">beat expectations operating income came in at eleven point two billion and expectations which is Wall Street consensus is what they say was seven point seven billion you know so that\u2019s like what let\u2019s like.<\/span><br \/><span title=\"31:43 - 31:50\" data-start=\"00:31:42.749\" data-end=\"00:31:49.761\" data-spk=\"1\" data-label=\"Scot\">Five per billion beat you know like a huge be compared to whatever.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[31:49]<\/small>\u00a0<span title=\"31:49 - 31:51\" data-start=\"00:31:49.461\" data-end=\"00:31:51.101\" data-spk=\"0\" data-label=\"Jason\">35%.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[31:51]<\/small>\u00a0<span title=\"31:51 - 31:59\" data-start=\"00:31:50.801\" data-end=\"00:31:58.822\" data-spk=\"1\" data-label=\"Scot\">Yeah so that push the stock up 10% and then also we\u2019ll talk about guidance and that was positive so,\u00a0<\/span><span title=\"31:59 - 32:02\" data-start=\"00:31:58.847\" data-end=\"00:32:02.434\" data-spk=\"1\" data-label=\"Scot\">it\u2019s been interesting Amazon stock has been kind of in a you know.<\/span><br \/><span title=\"32:03 - 32:17\" data-start=\"00:32:02.681\" data-end=\"00:32:17.222\" data-spk=\"1\" data-label=\"Scot\">Funk for lack of better words has been con rallying around at the same level and literally for quite a while like 18 months and this was the first Catalyst to cause a big move and that it\u2019s market cap a 10% move at Amazon Lester look\u00a0<\/span><span title=\"32:17 - 32:23\" data-start=\"00:32:17.103\" data-end=\"00:32:23.406\" data-spk=\"1\" data-label=\"Scot\">we\u2019ll get one of our researchers here one of the interns I look okay.<\/span><br \/><span title=\"32:24 - 32:36\" data-start=\"00:32:23.586\" data-end=\"00:32:35.983\" data-spk=\"1\" data-label=\"Scot\">So you know they were like 1.2 trillion and now they\u2019re like 1.4 trillion so that\u2019s you know a move like that takes a lot of dollars when you\u2019re bigger than a trillion dollar business to move things it\u2019s like a lot of.<\/span><br \/><span title=\"32:36 - 32:44\" data-start=\"00:32:36.350\" data-end=\"00:32:43.614\" data-spk=\"1\" data-label=\"Scot\">A lot of value creation can happen in a 1.2 trillion dollar company when it shoots up ten percent in five trading days.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:44]<\/small>\u00a0<span title=\"32:44 - 32:46\" data-start=\"00:32:43.729\" data-end=\"00:32:45.705\" data-spk=\"0\" data-label=\"Jason\">10% 0 by a lot of rocket fuel.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[32:46]<\/small>\u00a0<span title=\"32:46 - 32:55\" data-start=\"00:32:45.898\" data-end=\"00:32:54.923\" data-spk=\"1\" data-label=\"Scot\">It will yes a lot of dates with helicopter Pilots as well and a lot of cool new clothes,\u00a0<\/span><span title=\"32:55 - 33:08\" data-start=\"00:32:54.978\" data-end=\"00:33:07.957\" data-spk=\"1\" data-label=\"Scot\">so there were some really interesting things you know we spend the bulk of our time here on the Pod talking about retail and e-commerce to our favorite topics so Jason there\u2019s a lot of really interesting stuff going on in there as well you want to fill us in on that.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[33:08]<\/small>\u00a0<span title=\"33:08 - 33:14\" data-start=\"00:33:08.011\" data-end=\"00:33:14.026\" data-spk=\"0\" data-label=\"Jason\">Yeah everyone just wants to talk about ads and AI but it turns out that Amazon is actually a pretty good retailer.<\/span><br \/><span title=\"33:15 - 33:21\" data-start=\"00:33:14.585\" data-end=\"00:33:20.900\" data-spk=\"0\" data-label=\"Jason\">And so the the retail business also had a good quarter and to kind of set the table,\u00a0<\/span><span title=\"33:21 - 33:30\" data-start=\"00:33:20.955\" data-end=\"00:33:30.377\" data-spk=\"0\" data-label=\"Jason\">every every listener the show knows I love my US Department of Commerce data so that came out last week 4.<\/span><\/p>\n<p><small>[33:31]<\/small>\u00a0<span title=\"33:31 - 33:45\" data-start=\"00:33:30.672\" data-end=\"00:33:45.447\" data-spk=\"0\" data-label=\"Jason\">September which gives us Q3 data for the industry so us retail data in September this was up one point year-to-date sales in the United States January through September we\u2019re at one point nine percent this year versus last year.<\/span><br \/><span title=\"33:46 - 33:56\" data-start=\"00:33:45.580\" data-end=\"00:33:56.390\" data-spk=\"0\" data-label=\"Jason\">It\u2019s a 35 percent versus before the pandemic in 2019 so 1.9% is not very good growth by historical standards we would normally expect about 4% growth.<\/span><br \/><span title=\"33:57 - 34:05\" data-start=\"00:33:56.607\" data-end=\"00:34:04.538\" data-spk=\"0\" data-label=\"Jason\">So if we just look at Q3 growth the industry was up 2% which again half of what you would typically expect.<\/span><br \/><span title=\"34:05 - 34:14\" data-start=\"00:34:04.743\" data-end=\"00:34:13.774\" data-spk=\"0\" data-label=\"Jason\">So Amazon\u2019s growth for Q3 is 11 percent versus that that industry number of 2% so 11% growth,\u00a0<\/span><span title=\"34:14 - 34:20\" data-start=\"00:34:13.889\" data-end=\"00:34:20.348\" data-spk=\"0\" data-label=\"Jason\">is very robust the if you kind of,\u00a0<\/span><span title=\"34:20 - 34:33\" data-start=\"00:34:20.457\" data-end=\"00:34:32.655\" data-spk=\"0\" data-label=\"Jason\">look at Amazon\u2019s growth since the pandemic that Q3 number means they\u2019re up 85 percent versus Q3 2019 and their year-to-date number is up 111 percent versus 2019.<\/span><\/p>\n<p><small>[34:33]<\/small>\u00a0<span title=\"34:33 - 34:39\" data-start=\"00:34:32.920\" data-end=\"00:34:38.910\" data-spk=\"0\" data-label=\"Jason\">So Amazon is a very large retailer arguably number one or number two retailer in the US now,\u00a0<\/span><span title=\"34:39 - 34:45\" data-start=\"00:34:38.965\" data-end=\"00:34:44.691\" data-spk=\"0\" data-label=\"Jason\">and they\u2019re growing way faster than the industry average,\u00a0<\/span><span title=\"34:45 - 34:54\" data-start=\"00:34:44.775\" data-end=\"00:34:54.480\" data-spk=\"0\" data-label=\"Jason\">and again depending on how you count Walmart would be the number two retailer which is also growing significantly faster than the industry average so that actually,\u00a0<\/span><span title=\"34:55 - 35:05\" data-start=\"00:34:54.588\" data-end=\"00:35:05.470\" data-spk=\"0\" data-label=\"Jason\">tells you everything you need to know about the rest of the retail industry is that where you know we\u2019re having a significant bifurcation and with winners and losers in the space.<\/span><\/p>\n<p><small>[35:07]<\/small>\u00a0<span title=\"35:07 - 35:17\" data-start=\"00:35:07.352\" data-end=\"00:35:16.911\" data-spk=\"0\" data-label=\"Jason\">The other side of the retail business for Amazon is international and historically North America has been a very mature Market that has grown and generated profits,\u00a0<\/span><span title=\"35:17 - 35:25\" data-start=\"00:35:16.978\" data-end=\"00:35:25.132\" data-spk=\"0\" data-label=\"Jason\">International has not made money for Amazon and I would say it was a mixed bag in terms of their International performance,\u00a0<\/span><span title=\"35:25 - 35:34\" data-start=\"00:35:25.211\" data-end=\"00:35:34.440\" data-spk=\"0\" data-label=\"Jason\">on a constant currency basis International sales were up 11% which it\u2019s a smaller less mature business so you\u2019d like to see it growing faster than the,\u00a0<\/span><span title=\"35:35 - 35:36\" data-start=\"00:35:34.525\" data-end=\"00:35:36.405\" data-spk=\"0\" data-label=\"Jason\">the mature North American Market,\u00a0<\/span><span title=\"35:36 - 35:51\" data-start=\"00:35:36.490\" data-end=\"00:35:50.809\" data-spk=\"0\" data-label=\"Jason\">um but they\u2019re operating loss is way smaller so last year this quarter they lost 2.5 billion dollars this year they only lost a hundred million dollars so nearly break it even for the quarter.<\/span><br \/><span title=\"35:51 - 36:00\" data-start=\"00:35:50.947\" data-end=\"00:36:00.237\" data-spk=\"0\" data-label=\"Jason\">Um the this did not come up in their their earnings and no one asked them about this but Marketplace pulse reported earlier this month.<\/span><br \/><span title=\"36:00 - 36:03\" data-start=\"00:36:00.400\" data-end=\"00:36:03.229\" data-spk=\"0\" data-label=\"Jason\">That appears Amazon has.<\/span><br \/><span title=\"36:03 - 36:13\" data-start=\"00:36:03.416\" data-end=\"00:36:12.532\" data-spk=\"0\" data-label=\"Jason\">Meaningfully curtailed their International expansion and a lot of markets they had announced they were expanding into they seem to have delayed.<\/span><br \/><span title=\"36:13 - 36:16\" data-start=\"00:36:12.832\" data-end=\"00:36:16.143\" data-spk=\"0\" data-label=\"Jason\">Postponed or canceled a lot of international market openings,\u00a0<\/span><span title=\"36:16 - 36:25\" data-start=\"00:36:16.246\" data-end=\"00:36:25.457\" data-spk=\"0\" data-label=\"Jason\">so International definitely is not the start of the show it is also true of a lot of the other markets that say that Amazon\u2019s in still have more.<\/span><\/p>\n<p><small>[36:26]<\/small>\u00a0<span title=\"36:26 - 36:35\" data-start=\"00:36:25.866\" data-end=\"00:36:35.204\" data-spk=\"0\" data-label=\"Jason\">Just general macroeconomic headwinds than the United States does at the moment a lot of the world has a more severe version of the same macroeconomic problems that we have.<\/span><br \/><span title=\"36:35 - 36:44\" data-start=\"00:36:35.414\" data-end=\"00:36:43.502\" data-spk=\"0\" data-label=\"Jason\">In the US so a couple interesting tidbits.<\/span><\/p>\n<p><small>[36:44]<\/small>\u00a0<span title=\"36:44 - 36:53\" data-start=\"00:36:44.188\" data-end=\"00:36:53.387\" data-spk=\"0\" data-label=\"Jason\">But in the discussion about the retail business that you know the CFO Bryant.<\/span><\/p>\n<p><small>[36:54]<\/small>\u00a0<span title=\"36:54 - 36:58\" data-start=\"00:36:53.628\" data-end=\"00:36:57.810\" data-spk=\"0\" data-label=\"Jason\">Scot I always pronounce his name wrong alsop ski,\u00a0<\/span><span title=\"36:58 - 37:13\" data-start=\"00:36:57.882\" data-end=\"00:37:12.754\" data-spk=\"0\" data-label=\"Jason\">um brett-brett else got a soft ski talked about how despite the fact that their they had nice growth in retail that they are seeing a cautious consumer who\u2019s generally trading down and more Deal seeking,\u00a0<\/span><span title=\"37:13 - 37:16\" data-start=\"00:37:12.851\" data-end=\"00:37:15.573\" data-spk=\"0\" data-label=\"Jason\">then usual and that\u2019s consistent with,\u00a0<\/span><span title=\"37:16 - 37:25\" data-start=\"00:37:15.669\" data-end=\"00:37:24.616\" data-spk=\"0\" data-label=\"Jason\">cautions that we\u2019ve heard from other retailers that actually gives me some significant pause for Holiday which we\u2019ll talk about later,\u00a0<\/span><span title=\"37:25 - 37:34\" data-start=\"00:37:24.701\" data-end=\"00:37:33.588\" data-spk=\"0\" data-label=\"Jason\">the the thing that that Amazon was really touting in the retail business is that they dramatically improve their cost to serve,\u00a0<\/span><span title=\"37:34 - 37:42\" data-start=\"00:37:33.636\" data-end=\"00:37:42.133\" data-spk=\"0\" data-label=\"Jason\">and their speed of delivery in Q3 and that largely was thanks to an initiative they started a couple of quarters ago,\u00a0<\/span><span title=\"37:42 - 37:47\" data-start=\"00:37:42.193\" data-end=\"00:37:46.856\" data-spk=\"0\" data-label=\"Jason\">this transition from a single National fulfillment Network.<\/span><br \/><span title=\"37:47 - 37:53\" data-start=\"00:37:46.989\" data-end=\"00:37:53.141\" data-spk=\"0\" data-label=\"Jason\">To a regional fulfillment Network where they have eight distinct District regions in the United States,\u00a0<\/span><span title=\"37:53 - 38:02\" data-start=\"00:37:53.154\" data-end=\"00:38:01.500\" data-spk=\"0\" data-label=\"Jason\">that each sort of operate independently in the goal is to have all the the inventory that that Scot Wingo wants to buy,\u00a0<\/span><span title=\"38:02 - 38:09\" data-start=\"00:38:01.500\" data-end=\"00:38:08.993\" data-spk=\"0\" data-label=\"Jason\">in his region so the goods have to travel less far are less expensive to get to him,\u00a0<\/span><span title=\"38:09 - 38:18\" data-start=\"00:38:09.024\" data-end=\"00:38:18.476\" data-spk=\"0\" data-label=\"Jason\">and get to him faster and what they announced in the earnings was that the transition to this this.<\/span><\/p>\n<p><small>[38:19]<\/small>\u00a0<span title=\"38:19 - 38:27\" data-start=\"00:38:18.626\" data-end=\"00:38:26.984\" data-spk=\"0\" data-label=\"Jason\">Regional model has gone better and exceeded their expectations they\u2019re getting more.<\/span><br \/><span title=\"38:27 - 38:33\" data-start=\"00:38:27.117\" data-end=\"00:38:32.951\" data-spk=\"0\" data-label=\"Jason\">Incremental profit and faster speed of delivery than they even projected,\u00a0<\/span><span title=\"38:33 - 38:37\" data-start=\"00:38:33.060\" data-end=\"00:38:37.140\" data-spk=\"0\" data-label=\"Jason\">um out of transitioning to that so this is.<\/span><\/p>\n<p><small>[38:37]<\/small>\u00a0<span title=\"38:37 - 38:51\" data-start=\"00:38:37.345\" data-end=\"00:38:50.949\" data-spk=\"0\" data-label=\"Jason\">I know we talked a lot about how big and what a huge moat Amazon would just accept our but I still feel like this is under appreciated by most Amazon\u2019s competitors and their there.<\/span><br \/><span title=\"38:51 - 39:05\" data-start=\"00:38:51.069\" data-end=\"00:39:05.479\" data-spk=\"0\" data-label=\"Jason\">They\u2019re just opening a bigger Gap in speed of service and one of the things they mentioned is that they see a direct correlation between consumable sales and speed of service when they promised that they can get them there faster they sell more paper towels,\u00a0<\/span><span title=\"39:06 - 39:10\" data-start=\"00:39:05.581\" data-end=\"00:39:10.256\" data-spk=\"0\" data-label=\"Jason\">so I think it\u2019s very clear that that consumers want speed of service,\u00a0<\/span><span title=\"39:10 - 39:20\" data-start=\"00:39:10.364\" data-end=\"00:39:19.840\" data-spk=\"0\" data-label=\"Jason\">and Amazon has a huge advantage and it appears to be getting even bigger so that\u2019s interesting another thing I talk about a lot.<\/span><\/p>\n<p><small>[39:20]<\/small>\u00a0<span title=\"39:20 - 39:26\" data-start=\"00:39:20.327\" data-end=\"00:39:26.162\" data-spk=\"0\" data-label=\"Jason\">Um is there\u2019s a few new retailers that are also stealing significant share,\u00a0<\/span><span title=\"39:26 - 39:32\" data-start=\"00:39:26.258\" data-end=\"00:39:32.129\" data-spk=\"0\" data-label=\"Jason\">um very quickly and they\u2019re primarily Chinese companies so it\u2019s she in and most notably Tim oh,\u00a0<\/span><span title=\"39:32 - 39:41\" data-start=\"00:39:32.171\" data-end=\"00:39:41.413\" data-spk=\"0\" data-label=\"Jason\">and so well like they certainly didn\u2019t come up in the Amazon earnings a lot of the analysts started looking at the the,\u00a0<\/span><span title=\"39:41 - 39:53\" data-start=\"00:39:41.413\" data-end=\"00:39:52.950\" data-spk=\"0\" data-label=\"Jason\">rapid growth that Tim is getting and trying to figure out if they\u2019re stealing share from Amazon and evercore did a big consumer survey,\u00a0<\/span><span title=\"39:53 - 40:02\" data-start=\"00:39:52.993\" data-end=\"00:40:02.246\" data-spk=\"0\" data-label=\"Jason\">and the results of their survey was that Tim ooh is mostly not stealing share from Amazon that most of its shares coming from,\u00a0<\/span><span title=\"40:02 - 40:14\" data-start=\"00:40:02.301\" data-end=\"00:40:14.270\" data-spk=\"0\" data-label=\"Jason\">other retailers and in many cases coming from brick-and-mortar value retailers in the US so the dollar stores and it appears that that Amazon is more insulated from the.<\/span><br \/><span title=\"40:14 - 40:22\" data-start=\"00:40:14.403\" data-end=\"00:40:22.280\" data-spk=\"0\" data-label=\"Jason\">The growth and profit that they\u2019re getting so all of that you know rolls up to be a pretty impressive.<\/span><br \/><span title=\"40:22 - 40:32\" data-start=\"00:40:22.401\" data-end=\"00:40:32.232\" data-spk=\"0\" data-label=\"Jason\">Quarter I you\u2019ve talked about it a lot but it kind of feels like Amazon\u2019s got a bunch of knobs that they can turn whenever they want to improve profitability and it feels like,\u00a0<\/span><span title=\"40:32 - 40:36\" data-start=\"00:40:32.334\" data-end=\"00:40:36.204\" data-spk=\"0\" data-label=\"Jason\">they both added more knobs that can turn this quarter and they turn some of them.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:37]<\/small>\u00a0<span title=\"40:37 - 40:41\" data-start=\"00:40:36.679\" data-end=\"00:40:41.251\" data-spk=\"1\" data-label=\"Scot\">Yeah the other thing that\u2019s really interesting is if you look at.<\/span><br \/><span title=\"40:42 - 40:54\" data-start=\"00:40:41.636\" data-end=\"00:40:54.495\" data-spk=\"1\" data-label=\"Scot\">Amazon and you can\u2019t really read because they have so many employees in the Fulfillment centers you can\u2019t really tell their employee growth and it\u2019s surging right now is they prefer prepare for holiday but another really interesting trend is\u00a0<\/span><span title=\"40:54 - 40:59\" data-start=\"00:40:54.381\" data-end=\"00:40:58.930\" data-spk=\"1\" data-label=\"Scot\">Google meta and there\u2019s one of the other ones\u00a0<\/span><span title=\"40:59 - 41:06\" data-start=\"00:40:58.786\" data-end=\"00:41:06.207\" data-spk=\"1\" data-label=\"Scot\">Microsoft their revenue per employee is surging so they\u2019re they\u2019re actually not hiring many people right now and,\u00a0<\/span><span title=\"41:06 - 41:15\" data-start=\"00:41:06.255\" data-end=\"00:41:15.004\" data-spk=\"1\" data-label=\"Scot\">the assumption is these companies are leveraging AI internally and becoming exceedingly efficient and you kind of wonder.<\/span><br \/><span title=\"41:15 - 41:29\" data-start=\"00:41:15.329\" data-end=\"00:41:29.258\" data-spk=\"1\" data-label=\"Scot\">Is Amazon doing the same thing I hear inklings we have kids that are not so far out of college they don\u2019t know folks looking for jobs and things I hear inklings that Amazon is not really hiring that much as they kind of were at one point so I kind of wonder,\u00a0<\/span><span title=\"41:29 - 41:32\" data-start=\"00:41:29.300\" data-end=\"00:41:31.679\" data-spk=\"1\" data-label=\"Scot\">are they also\u00a0<\/span><span title=\"41:32 - 41:43\" data-start=\"00:41:31.632\" data-end=\"00:41:43.066\" data-spk=\"1\" data-label=\"Scot\">hiding behind that that have like a million employees and it surges like 200,000 for holiday so it doesn\u2019t look like they\u2019re being more productive but what they don\u2019t do is put out corporate versus fulfillment center.<\/span><br \/><span title=\"41:43 - 41:47\" data-start=\"00:41:43.205\" data-end=\"00:41:47.093\" data-spk=\"1\" data-label=\"Scot\">Have to have an idea that if we looked at corporate there also.<\/span><\/p>\n<p><small>[41:48]<\/small>\u00a0<span title=\"41:48 - 41:54\" data-start=\"00:41:47.586\" data-end=\"00:41:54.303\" data-spk=\"1\" data-label=\"Scot\">One dial they\u2019ve turned its new is I think they\u2019re not hiring as me folk because people are getting a lot of efficiencies from these AI.<\/span><br \/><span title=\"41:55 - 41:58\" data-start=\"00:41:54.767\" data-end=\"00:41:58.083\" data-spk=\"1\" data-label=\"Scot\">Systems that these companies are dogfooding internally.<\/span><br \/><span title=\"41:59 - 42:10\" data-start=\"00:41:58.570\" data-end=\"00:42:10.137\" data-spk=\"1\" data-label=\"Scot\">And because they\u2019re they\u2019re a little bit further ahead than kind of like what we see out of the lme\u2019s I think they\u2019re doing some really interesting things that they will productized and we will we will see what they\u2019re doing\u00a0<\/span><span title=\"42:10 - 42:19\" data-start=\"00:42:09.994\" data-end=\"00:42:19.499\" data-spk=\"1\" data-label=\"Scot\">in a lot of it can be this like really focused you know create an ad you know a lot of the stuff that used to be,\u00a0<\/span><span title=\"42:20 - 42:31\" data-start=\"00:42:19.584\" data-end=\"00:42:31.115\" data-spk=\"1\" data-label=\"Scot\">kind of out sourced or you would have to throw a bunch of bodies at it I think there\u2019s LMS doing a lot of that you know customer support Bots think things like that that you know\u00a0<\/span><span title=\"42:31 - 42:37\" data-start=\"00:42:30.965\" data-end=\"00:42:37.461\" data-spk=\"1\" data-label=\"Scot\">I think there\u2019s a lot of efficiencies going on inside of their that\u2019s helping these guys really beat their earnings numbers.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[42:38]<\/small>\u00a0<span title=\"42:38 - 42:43\" data-start=\"00:42:37.791\" data-end=\"00:42:43.488\" data-spk=\"0\" data-label=\"Jason\">Yeah I do think that\u2019s true it\u2019s not lost on me that just as the retailgeek bought is gonna\u00a0<\/span><span title=\"42:43 - 42:53\" data-start=\"00:42:43.296\" data-end=\"00:42:53.403\" data-spk=\"0\" data-label=\"Jason\">replace me at poobah says all the other places that might have hired me are also not so my fallback is that I may be washing cars at spiffy so we\u2019ll see how that.<\/span><br \/><span title=\"42:54 - 42:59\" data-start=\"00:42:53.601\" data-end=\"00:42:58.534\" data-spk=\"0\" data-label=\"Jason\">That all plays out but I promise to work hard of it if it comes to that Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[42:58]<\/small>\u00a0<span title=\"42:58 - 43:08\" data-start=\"00:42:58.234\" data-end=\"00:43:07.536\" data-spk=\"1\" data-label=\"Scot\">Absolutely it also we could just turn this podcast into the entire ads so that could be could be here our second asked yeah.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[43:04]<\/small>\u00a0<span title=\"43:04 - 43:12\" data-start=\"00:43:04.171\" data-end=\"00:43:12.283\" data-spk=\"0\" data-label=\"Jason\">We can monetize the podcast I\u2019m not I\u2019m not doing that to the listeners they advertisers would make us make a shorter podcast Scott.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[43:13]<\/small>\u00a0<span title=\"43:13 - 43:15\" data-start=\"00:43:12.704\" data-end=\"00:43:14.543\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[43:14]<\/small>\u00a0<span title=\"43:14 - 43:18\" data-start=\"00:43:14.243\" data-end=\"00:43:17.523\" data-spk=\"0\" data-label=\"Jason\">I\u2019m not down for that I\u2019m not down for it.<\/span><br \/><span title=\"43:18 - 43:32\" data-start=\"00:43:17.722\" data-end=\"00:43:32.287\" data-spk=\"0\" data-label=\"Jason\">Even if I have to wash cars the I think you\u2019re certainly right like a lot of these companies and Amazon very overtly has has put some more barriers and in place in terms of corporate hires.<\/span><br \/><span title=\"43:32 - 43:39\" data-start=\"00:43:32.408\" data-end=\"00:43:38.963\" data-spk=\"0\" data-label=\"Jason\">The one notable exception being the AI space they\u2019re hiring pretty rapidly.<\/span><br \/><span title=\"43:39 - 43:50\" data-start=\"00:43:39.192\" data-end=\"00:43:49.762\" data-spk=\"0\" data-label=\"Jason\">Um but I also think in addition anything you mentioned that Amazon\u2019s actually finally like really leaning into the Fulfillment center automation so while they\u2019ve always.<\/span><br \/><span title=\"43:50 - 43:54\" data-start=\"00:43:50.141\" data-end=\"00:43:53.571\" data-spk=\"0\" data-label=\"Jason\">Been a leader in in having fulfillment center,\u00a0<\/span><span title=\"43:54 - 44:08\" data-start=\"00:43:53.608\" data-end=\"00:44:07.506\" data-spk=\"0\" data-label=\"Jason\">not all their fulfillment centers in a big chunk of their fulfillment centers were not highly automated and so I think they\u2019re now automating all of them and they\u2019re rapidly moving to sort of next-gen automation.<\/span><br \/><span title=\"44:08 - 44:13\" data-start=\"00:44:07.699\" data-end=\"00:44:13.395\" data-spk=\"0\" data-label=\"Jason\">Um you know where everyone else is kind of putting their first robots and you know moving things around the warehouse more efficiently.<\/span><br \/><span title=\"44:14 - 44:19\" data-start=\"00:44:13.516\" data-end=\"00:44:19.471\" data-spk=\"0\" data-label=\"Jason\">Amazon is like rolling out new technology that\u2019s a lot more.<\/span><br \/><span title=\"44:20 - 44:33\" data-start=\"00:44:19.771\" data-end=\"00:44:33.418\" data-spk=\"0\" data-label=\"Jason\">Seamless in how the people and the automation work together in a in a safe cohesive way so I do think one of the levers Amazon has is.<\/span><br \/><span title=\"44:34 - 44:39\" data-start=\"00:44:33.749\" data-end=\"00:44:38.669\" data-spk=\"0\" data-label=\"Jason\">You know to really add more Automation in those in those fulfillment centers and in that cost to serve.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[44:39]<\/small>\u00a0<span title=\"44:39 - 44:42\" data-start=\"00:44:39.127\" data-end=\"00:44:42.269\" data-spk=\"1\" data-label=\"Scot\">Absolutely it\u2019s kind of interesting because we started spiffy,\u00a0<\/span><span title=\"44:42 - 44:55\" data-start=\"00:44:42.305\" data-end=\"00:44:54.948\" data-spk=\"1\" data-label=\"Scot\">which is my on-demand car care company where you\u2019re going to come wash cars people are like AI is you know they\u2019ll be a robot that can do this in five years I was like I don\u2019t know like you know the Boston Dynamics robots are cool but they\u2019re not.<\/span><br \/><span title=\"44:56 - 45:08\" data-start=\"00:44:55.772\" data-end=\"00:45:07.717\" data-spk=\"1\" data-label=\"Scot\">Let\u2019s just programmed well I don\u2019t think it\u2019s like that you know it\u2019s not thinking and who would have guessed that a I would replace you know the digital retail Talking Heads first and and not.<\/span><br \/><span title=\"45:08 - 45:12\" data-start=\"00:45:07.838\" data-end=\"00:45:11.828\" data-spk=\"1\" data-label=\"Scot\">Not the physical things I think the physical stuff is going to take a lot longer\u00a0<\/span><span title=\"45:12 - 45:20\" data-start=\"00:45:11.798\" data-end=\"00:45:19.645\" data-spk=\"1\" data-label=\"Scot\">but who knows once these a eyes you have there\u2019s Tesla has that that demonstration of theirs was The Optimist\u00a0<\/span><span title=\"45:20 - 45:28\" data-start=\"00:45:19.526\" data-end=\"00:45:27.710\" data-spk=\"1\" data-label=\"Scot\">that you know it kind of is learning things as it goes and making inference in real time so that is kind of you know we who knows where all this is going to go.<\/span><br \/><span title=\"45:28 - 45:36\" data-start=\"00:45:28.227\" data-end=\"00:45:36.423\" data-spk=\"1\" data-label=\"Scot\">If we back to it now and not science fiction but your term science fiction so.<\/span><\/p>\n<p><small>[45:37]<\/small>\u00a0<span title=\"45:37 - 45:50\" data-start=\"00:45:37.018\" data-end=\"00:45:49.955\" data-spk=\"1\" data-label=\"Scot\">Looking forward for fourth quarter they put guidance out that they\u2019re going to see growth in the fourth quarter of 7 to 12% the midpoint of that range which let\u2019s see would be 9\u00a0<\/span><span title=\"45:50 - 45:58\" data-start=\"00:45:49.889\" data-end=\"00:45:58.260\" data-spk=\"1\" data-label=\"Scot\">and change itself was five and a half percent above the consensus midpoint so this is what we would call A Classic.<\/span><br \/><span title=\"45:59 - 46:09\" data-start=\"00:45:58.687\" data-end=\"00:46:09.262\" data-spk=\"1\" data-label=\"Scot\">Meet Top Line Crush bottom line on the current quarter and then raised the next quarter both top and bottom line pretty substantially so that you know.<\/span><br \/><span title=\"46:10 - 46:21\" data-start=\"00:46:09.605\" data-end=\"00:46:21.136\" data-spk=\"1\" data-label=\"Scot\">This is an important data point when we kind of swirl it together with your Department of Commerce data it does seem like Amazon signaling they\u2019re feeling pretty good about the fourth quarter\u00a0<\/span><span title=\"46:21 - 46:33\" data-start=\"00:46:21.034\" data-end=\"00:46:32.656\" data-spk=\"1\" data-label=\"Scot\">and everyone felt like this was kind of conservative given I didn\u2019t put the bottom line number but they felt like that was pretty conservative given what they just did and you know they felt like\u00a0<\/span><span title=\"46:33 - 46:41\" data-start=\"00:46:32.560\" data-end=\"00:46:40.870\" data-spk=\"1\" data-label=\"Scot\">dad a lot of room to kind of beat that number and maybe it\u2019s going to be more like 14 15 percent growth which would be you have a new post\u00a0<\/span><span title=\"46:41 - 46:54\" data-start=\"00:46:40.834\" data-end=\"00:46:54.372\" data-spk=\"1\" data-label=\"Scot\">covid reversion hi I guess you would look at it where do you did you leave this feeling more optimistic about Q4 or we are your classic Jason curmudgeon myself.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[46:54]<\/small>\u00a0<span title=\"46:54 - 47:05\" data-start=\"00:46:54.439\" data-end=\"00:47:05.038\" data-spk=\"0\" data-label=\"Jason\">Yeah no I think I\u2019m mostly curmudgeon e not for Amazon I actually I think their guidance seems realistic to me.<\/span><\/p>\n<p><small>[47:06]<\/small>\u00a0<span title=\"47:06 - 47:17\" data-start=\"00:47:05.556\" data-end=\"00:47:17.153\" data-spk=\"0\" data-label=\"Jason\">On the top line I think the bottom line is just totally up to their whims like if they want to blow away the bottom line they can if they want to invest at all in you know new.<\/span><\/p>\n<p><small>[47:18]<\/small>\u00a0<span title=\"47:18 - 47:27\" data-start=\"00:47:17.562\" data-end=\"00:47:27.416\" data-spk=\"0\" data-label=\"Jason\">New AI capabilities and and keep the bottom line constrain they can do that too but the that,\u00a0<\/span><span title=\"47:28 - 47:33\" data-start=\"00:47:27.531\" data-end=\"00:47:33.341\" data-spk=\"0\" data-label=\"Jason\">Top Line I think they\u2019re likely to hit their guidance\u00a0<\/span><span title=\"47:33 - 47:43\" data-start=\"00:47:33.312\" data-end=\"00:47:43.148\" data-spk=\"0\" data-label=\"Jason\">and again you know one or two other big retailers might you know have a pretty robust holiday as well but I actually think that that sucks all the,\u00a0<\/span><span title=\"47:43 - 47:50\" data-start=\"00:47:43.251\" data-end=\"00:47:49.500\" data-spk=\"0\" data-label=\"Jason\">the potential growth out of the market for holiday and so I actually think.<\/span><br \/><span title=\"47:50 - 47:59\" data-start=\"00:47:49.638\" data-end=\"00:47:59.396\" data-spk=\"0\" data-label=\"Jason\">That sort of signifies potentially Bleak holiday season for a lot of other traditional retailers so I guess it\u2019s a.<\/span><br \/><span title=\"48:00 - 48:08\" data-start=\"00:47:59.553\" data-end=\"00:48:08.068\" data-spk=\"0\" data-label=\"Jason\">Little bifurcated it\u2019s good news for Amazon will see what a Walmart\u2019s Q3 earnings look like they announced on November 16th,\u00a0<\/span><span title=\"48:08 - 48:14\" data-start=\"00:48:08.170\" data-end=\"00:48:13.884\" data-spk=\"0\" data-label=\"Jason\">but I do feel like endemic lie Amazon and Walmart have some,\u00a0<\/span><span title=\"48:14 - 48:22\" data-start=\"00:48:13.897\" data-end=\"00:48:22.177\" data-spk=\"0\" data-label=\"Jason\">some inherent advantages that are insulating them from some of the economic headwinds and I think that that really just makes things,\u00a0<\/span><span title=\"48:22 - 48:31\" data-start=\"00:48:22.273\" data-end=\"00:48:31.449\" data-spk=\"0\" data-label=\"Jason\">that much more difficult for the the rest of retail and so I desperately want to be wrong but I think it\u2019s going to be,\u00a0<\/span><span title=\"48:31 - 48:44\" data-start=\"00:48:31.461\" data-end=\"00:48:43.816\" data-spk=\"0\" data-label=\"Jason\">I kind of disappointing holiday for a bunch of folks there also was sort of some if you really listen to the Q&amp;A portion of the investor call,\u00a0<\/span><span title=\"48:44 - 48:45\" data-start=\"00:48:43.918\" data-end=\"00:48:44.519\" data-spk=\"0\" data-label=\"Jason\">there.<\/span><\/p>\n<p><small>[48:45]<\/small>\u00a0<span title=\"48:45 - 48:58\" data-start=\"00:48:44.898\" data-end=\"00:48:57.648\" data-spk=\"0\" data-label=\"Jason\">The the CFO in particular had some concerns about capacity around Q4 and one of the things he called that was carrier capacity which is interesting because Amazon does so much.<\/span><br \/><span title=\"48:58 - 49:10\" data-start=\"00:48:57.805\" data-end=\"00:49:10.189\" data-spk=\"0\" data-label=\"Jason\">Of their own fulfillment now that they\u2019re just way less dependent on third-party carriers but if he\u2019s worried about carrier capacity for Q4 you can bet that means that every other retailer ought to be really concerned,\u00a0<\/span><span title=\"49:10 - 49:14\" data-start=\"00:49:10.286\" data-end=\"00:49:13.723\" data-spk=\"0\" data-label=\"Jason\">about carrier capacity for cube Q4,\u00a0<\/span><span title=\"49:14 - 49:21\" data-start=\"00:49:13.789\" data-end=\"00:49:21.480\" data-spk=\"0\" data-label=\"Jason\">and so we you know we feel like we talked about that every holiday season but Amazon\u2019s got a lot of.<\/span><br \/><span title=\"49:22 - 49:31\" data-start=\"00:49:21.925\" data-end=\"00:49:31.029\" data-spk=\"0\" data-label=\"Jason\">New fulfillment center capacity that\u2019s coming online in Q3 of this year and will even in Q4 and so I guess.<\/span><br \/><span title=\"49:31 - 49:40\" data-start=\"00:49:31.179\" data-end=\"00:49:40.024\" data-spk=\"0\" data-label=\"Jason\">If there\u2019s one thing that could glitch it Amazon if there\u2019s not enough delivery capacity if some of these new fulfillment centers have any,\u00a0<\/span><span title=\"49:40 - 49:49\" data-start=\"00:49:40.127\" data-end=\"00:49:49.062\" data-spk=\"0\" data-label=\"Jason\">any sort of glitches or delays and coming online that you know that that could be the constraining factor for their Q4 growth.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[49:50]<\/small>\u00a0<span title=\"49:50 - 49:58\" data-start=\"00:49:49.651\" data-end=\"00:49:58.484\" data-spk=\"1\" data-label=\"Scot\">There\u2019s so sprinkle of curmudgeon e speaking of holiday where can listeners go if they want to get the\u00a0<\/span><span title=\"49:58 - 50:05\" data-start=\"00:49:58.298\" data-end=\"00:50:04.818\" data-spk=\"1\" data-label=\"Scot\">best holiday news even though we haven\u2019t been potting as much as we want to because our day jobs have been\u00a0<\/span><span title=\"50:05 - 50:22\" data-start=\"00:50:04.626\" data-end=\"00:50:22.316\" data-spk=\"1\" data-label=\"Scot\">absorbing a fair amount of time this year we are going to have some killer content around this holiday and kicking it off we have our very own jacent live not an AI and you\u2019re going to do a little webinar for Commerce next what\u2019s that all about and when is it.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[50:22]<\/small>\u00a0<span title=\"50:22 - 50:37\" data-start=\"00:50:22.473\" data-end=\"00:50:37.405\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah so on Monday November 6 which I think is a week from now if I\u2019m not mistaken we\u2019re doing a Commerce next webinar where we\u2019ll sort of preview the holiday season\u00a0<\/span><span title=\"50:37 - 50:47\" data-start=\"00:50:37.399\" data-end=\"00:50:47.446\" data-spk=\"0\" data-label=\"Jason\">so you heard the very early preview just now but we\u2019ll go into more detail share some of the third-party forecast for Holiday Good News,\u00a0<\/span><span title=\"50:47 - 50:57\" data-start=\"00:50:47.483\" data-end=\"00:50:57.247\" data-spk=\"0\" data-label=\"Jason\">all the other predictors are much more optimistic than I am so so we\u2019ll hit that on November 6 and then of course there will be all the good real time\u00a0<\/span><span title=\"50:57 - 51:06\" data-start=\"00:50:57.175\" data-end=\"00:51:05.594\" data-spk=\"0\" data-label=\"Jason\">holiday news that will be will be hitting pretty hot and heavy here on the podcast so we\u2019ll we\u2019ll have some of the best data sources,\u00a0<\/span><span title=\"51:06 - 51:12\" data-start=\"00:51:05.660\" data-end=\"00:51:11.705\" data-spk=\"0\" data-label=\"Jason\">right before and after the holiday to kind of talk about where things are going and what actually.<\/span><\/p>\n<p><small>[51:15]<\/small>\u00a0<span title=\"51:15 - 51:21\" data-start=\"00:51:14.956\" data-end=\"00:51:20.610\" data-spk=\"0\" data-label=\"Jason\">And with that I think it is happen again we\u2019ve used up all our allotted time\u00a0<\/span><span title=\"51:21 - 51:30\" data-start=\"00:51:20.533\" data-end=\"00:51:30.141\" data-spk=\"0\" data-label=\"Jason\">as always if this deep dive in Amazon\u2019s earnings was valuable for you the way you can repay that value is to jump on iTunes and give us that five-star review.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[51:31]<\/small>\u00a0<span title=\"51:31 - 51:34\" data-start=\"00:51:30.538\" data-end=\"00:51:34.269\" data-spk=\"1\" data-label=\"Scot\">Thanks everyone and Jason until next time.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[51:34]<\/small>\u00a0<span title=\"51:34 - 51:36\" data-start=\"00:51:34.329\" data-end=\"00:51:36.408\" data-spk=\"0\" data-label=\"Jason\">Happy conversing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 312 is breakdown of Amazon\u2019s Q3 2023 earnings. Subscribe: ????? Amazon reported another strong [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-10871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=10871"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/10871\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=10871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=10871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=10871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}