Tags: Jim Cramer | Amazon | Robots | Artificial | Intelligence

CNBC's Jim Cramer: Amazon Is 'Going to Have Robots Building Robots'

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By    |   Thursday, 25 May 2017 03:03 PM

CNBC’s Jim Cramer says that Amazon.com is dominating retail because the online giant uses artificial intelligence to determine customers’ buying preferences and habits.

"Amazon is artificial intelligence," Cramer said on CNBC.

Amazon continues to automate its warehouses use artificial intelligence to manage inventory.

“They know what we're going to like. ... They skate not where the puck is going to be. They skate right into the goal. That's Amazon."

"They're going to have robots building robots. And then we're really going to have nothing. We may be naked," Cramer joked on "Squawk on the Street."

To be sure, Amazon's ventures far beyond online retail, from cloud computing to movie making, are raising questions among corporate strategy experts about its focus. 

Despite Amazon shares hitting all-time highs, there are concerns that if blockbuster growth stops, investors may come to regard the Seattle company more like a conglomerate stock — worth less than the sum of its pieces, Reuters reported.

"High growth covers a lot of sins," said Harry Kraemer, a partner at private equity firm Madison Dearborn Partners and a professor at Northwestern University's Kellogg School of Management.

"Picture yourself running the company where one minute we're talking about how we're going to operate air cargo, and the next minute we're going to talk about artificial intelligence," he said. "I don’t think it's sustainable."

So far, analysts have balked at the idea of calling Amazon a conglomerate because its businesses, although varied, all relate in some way to retail. Warehouses, trucks and planes bring packages to shoppers' doorsteps. Amazon Web Services sells the very cloud-computing services to enterprises that were built to meet the technology needs of Amazon.com.

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
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CNBC's Jim Cramer says that Amazon.com is dominating retail because the online giant uses artificial intelligence to determine customers' buying preferences and habits.
Jim Cramer, Amazon, Robots, Artificial, Intelligence
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2017-03-25
Thursday, 25 May 2017 03:03 PM
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