Breakfast News: Amazon Launches GenAI Tools
March 26, 2025
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Tuesday's Markets |
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| S&P 500 5,777 (+0.16%) |
| Nasdaq 18,272 (+0.46%) |
| Dow 42,588 (+0.01%) |
| Bitcoin $88,121 (-0.23%) |
1. Amazon's Generative AI Tests
Amazon (AMZN 1.40%) has started rolling out new generative AI features, including its new shopping assistant Interests AI, where users describe their interests using conversational language – like "natural makeup products for summer glow from top brands" – resulting in more tailored product suggestions.
- CEO Andy Jassy is pushing employees to build GenAI applications, with roughly 1,000 apps on the go: Interests leverages large language models to translate everyday phrases into queries search engines can then turn into recommendations. It's due to be rolled out to all U.S. consumers in the coming months.
- "Clinically verified": Another GenAI tool, Health AI aims to answer health and wellness questions. It will link to product recommendations and Amazon's pharmacy services. Some responses will have a badge showing they're "reviewed by US-based licensed clinicians," the company says.
2. Copper Tariffs May Arrive Imminently
Tariffs on copper imports could be with us soon, reports Bloomberg, as the copper price hit a record high yesterday. Last month, President Trump ordered an investigation into possible tariffs on national security grounds, to report within 270 days. It could now happen within weeks.
- "Howard Lutnick will move in what I like to call Trump time": White House advisor Peter Navarro said in February he expects the secretary of commerce to get the results as quickly as possible.
- Could hit $12,000, from about $10,000: Copper-trading firm Trafigura is bullish about the copper price, while Citigroup (C +1.10%) and Goldman Sachs (GS 1.23%) have both said they expect a 25% copper tariff by the end of the year.
3. Auto Updates
BMW and Alibaba (BABA 0.31%) have announced a tie-up to build AI into cars for the Chinese market. The deal will use AI driver technology from joint venture Banma, which was developed alongside Alibaba's in-house Qwen AI model.
- "Primary objective": Alibaba CEO Eddie Wu last month spoke of the company's push into artificial general intelligence after it signed a deal to provide AI technology for Apple (AAPL 0.04%) iPhones sold in China.
- "Illegitimate and illegal U.S. tariffs": Canadian transport minister Chrystia Freeland announced a freeze on EV rebate payments for Tesla (TSLA +3.14%) car purchases, and has banned the company from future rebate programs as long as tariffs persist.
4. Next Up: Notable Earnings
Rule Breakers recommendation Chewy (CHWY 3.74%) posts fourth-quarter results before the opening bell. The online pet products retailer beat Q3 revenue expectations but missed on earnings as its customer base fell slightly. The company expects double-digit revenue growth for the full year with recurring purchases rising.
- Optimistic outlook for fiscal 2025: Uniform rental and facility services specialist Cintas (CTAS +0.40%) reports Q3 this morning, after a Q2 earnings beat with revenue in line with estimates. Watch for strategic moves in technology investment.
- Up 372% over past 5 years, trouncing the S&P 500: Jefferies (JEF 0.56%) will release Q1 figures for its new fiscal year after market close. The investment bank saw Q4 net earnings more than triple year-over-year, but missed estimates for the quarter.
5. Billion-Dollar Family
Dollar Tree (DLTR +0.26%), due to report Q4 earnings this morning, is on the verge of selling its Family Dollar business for around $1 billion. According to a Wall Street Journal report, the buyer is a consortium of private-equity companies Brigade Capital Management and Macellum Capital Management.
- Struggling for growth: The company bought the Family Dollar chain for around $9 billion in 2015. But the business aimed at low-income shoppers has not performed, and Dollar Tree announced plans last year to close about 1,000 outlets.
- Close to reversing yesterday's 3.7% drop in early trading: Dollar Tree is down 10% year to date, but is picking up in pre-market trading ahead of the expected confirmation of the deal.
6. Foolish Fun
In good company alongside the likes of Netflix and Spotify, Chewy benefits from recurring revenue via its subscription service – the Autoship program accounted for 80% of net sales as of Q3 2024.
Which company's subscription service are you signed up to that you hope will IPO soon so you could invest in them, and why? Become a member to hear what your fellow Fools are saying!
