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Amazon's Ambitious Expansion: From Cars to Cancer Research, Driving a 49.7% Stock Surge

Market BriefMonday, Dec 16, 2024 3:02 am ET

1min read

Amazon.com Inc. (AMZN) has observed a slight decline in its stock price, dropping 0.66% last week and marking a two-day slide totaling a 1.22% decrease. Within the past week, however, the stock saw a modest rise of 0.19%, contributing to a significant year-to-date increase of 49.7%, culminating in a market capitalization of $2.3917 trillion. This performance overall reflects Amazon's robust growth trajectory in 2023, buoyed by strategic enhancements in its services and the broader market recovery.

Recently, Amazon launched its Amazon Auto service across 48 U.S. cities, aiming to rival Costco's popular car-buying program. Initially, Amazon Auto provides an online platform for purchasing cars from Hyundai dealerships, with plans for broader brand and geographical expansions by 2025. This online experience allows potential buyers to filter options by brand, model, and features, offering instant appraisal and vehicle exchange at a transparent price point with financing options. The move represents Amazon's strategic push to broaden its consumer reach through diversified services.

In another strategic development, Amazon has allied with Intuit Inc. to bring advanced financial tools to its vast network of third-party sellers by mid-2025. The integration of Intuit's QuickBooks into Amazon Seller Central will provide sellers with real-time insights into their financial health, enhancing their ability to manage profitability, cash flow, and tax considerations. This initiative underscores Amazon’s commitment to equipping small and medium-sized sellers with comprehensive support to expand successfully.

Furthermore, Amazon Web Services has been instrumental in collaboration with LG AI Research in developing advanced AI models for early cancer diagnosis. During the re:Invent 2024 global summit, it was announced that LG AI Research utilized AWS's cloud computing capabilities to significantly reduce the time required for genetic testing, thereby accelerating treatment processes. This partnership illustrates Amazon’s influence extending beyond retail into sectors like healthcare, leveraging technology to deliver tangible benefits in disease diagnosis and management.

Amazon's move to continually innovate—whether through expanding its automotive services, supporting its seller network with financial tools, or partnering in cutting-edge medical research—highlights its adaptive strategies in maintaining market leadership. As its shares have risen substantially this year, Amazon remains a powerful force in the global market, continually evolving to meet the dynamic needs of various sectors.

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