Amazon (NASDAQ:AMZN) stock is likely to move higher this year, and not only because the company is an e-commerce giant. For one thing, Amazon recently acquired a business that offers a range of healthcare services. Also, Amazon is engaged in a collaboration that will help developers conduct work related to artificial intelligence (AI) on the company’s cloud computing platform.
It’s no secret that Amazon has faced challenges during the past year. Due to headwinds such as high inflation and fears of a recession, Amazon’s most recently reported quarterly earnings data were mixed, and the company provided weak forward guidance.
Does this mean it’s time for investors to give up on Amazon? Not at all. As the company delves boldly into high-confidence market segments, Amazon should reward patient shareholders with surprisingly robust returns in 2023.
Amazon Helps Make Healthcare More Accessible
Make no mistake about it: Amazon wants to be much more than just a basic e-commerce business. Amazon could actually become a popular portal to access primary healthcare. To that end, Amazon just finalized its acquisition of One Medical, which was previously owned by 1Life Healthcare (a company that is currently delisted).
One Medical operates a chain of primary-care clinics and also offers access to virtual healthcare services. Furthermore, One Medical provides an app that gives clients “more control of how they seek care and the ability to do so from home or on-the-go.”
If you’re bullish on remotely delivered and app-based healthcare services, then you consider Amazon’s buyout of One Medical as a potentially transformative event. It’s good news for patients seeking affordable access to certain healthcare services and for Amazon’s long-term shareholders.
Amazon Teams Up to Target AI Developers
AI is a red-hot market segment nowadays. However, not every high-conviction tech business has to build its own generative/conversational AI platform. Instead, Amazon is targeting AI developers as potential clients.
The company recently announced a collaboration with software-development hub Hugging Face. More specifically, Amazon’s cloud-computing arm, Amazon Web Services (AWS), is teaming up with Hugging Face. Together, they will “make it easier to carry out artificial intelligence work (AI) in Amazon’s cloud.”
This doesn’t mean Amazon wasn’t already involved with AI development. Even prior to the collaboration with Hugging Face, AWS “already offer[ed] tools to help developers create AI-based software.”
Still, Hugging Face brings a lot to the table. Amazon describes Hugging face as a “central place online where AI developers share open-source code and models.” As the two companies work together, it should be easier for AI developers to run code on the AWS cloud.
So, Is AMZN Stock a Buy?
As you can see, Amazon is making moves now in order to expand its revenue-generating opportunities in the future. Still, some financial traders are too focused on last year’s results to consider what Amazon might achieve in 2023.
In other words, forward-thinking investors should definitely consider AMZN stock a buy. Feel free to add a few Amazon shares to your portfolio if you agree that the company is well-positioned for a comeback in the coming months.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.