Amazon's Efficiency Drive Boosts AWS Growth

Amazon's stock price has been volatile over the past year, with concerns about high capital investments and their impact on growth and margins.

However, the company's Amazon Web Services (AWS) segment has been growing steadily, with a record order backlog of $496 billion as of Q2 FY26.

Amazon is also focusing on boosting efficiency in its consumer business through a highly automated delivery-station concept called Project Tetromino, which uses AI and robots to process packages at 2.5 times the rate of existing deliveries.

The project could slow down warehouse hiring growth over the coming decade, but it's likely to boost efficiency and have a positive impact on margins.