FeesSafety
Pluang+

Amazon warns against overusing AI tokens, calls current AI usage metrics flawed amid rising costs.

Market News
27 Oct 2026, 21:41 WIB
CNBC
View Source
Neutral
Amazon warns against overusing AI tokens, calls current AI usage metrics flawed amid rising costs.

Amazon issued an internal memo advising software engineers not to rely solely on token usage or code generation metrics to measure AI adoption, calling these methods "deeply flawed." The company highlighted that such metrics can drive up costs and add complexity without accurately reflecting productivity gains. Amazon also discouraged employees from using AI tools where they don't add value, emphasizing that recognizing when AI isn't helpful is a sign of good judgment. This guidance comes as Amazon and other companies face challenges managing AI costs and measuring its impact on work efficiency.

Amazon shares trade at USD 254.35 on Pluang as of Oct 28, 2026 01:51 WIB, up 2.11% in one day. The stock's market cap stands at $2.69 trillion, with a typical hold time of 128 days on the platform. Most Pluang users are buyers, with 77% of order activity favoring Amazon today.

More News (AMZN)

Amazon Q3 revenue to grow on AWS strength, but AI investments may pressure profits and cash flow

Amazon Q3 revenue to grow on AWS strength, but AI investments may pressure profits and cash flow

Amazon.com, Inc. is expected to report solid revenue growth in Q3, mainly driven by strong performance in its cloud business, AWS. However, heavy investments in artificial intelligence could weigh on the company's earnings and free cash flow, with ne...

Company Fundamentals
Neutral
4 hours ago
Amazon's Q3 earnings focus on AWS revenue and capex amid high options volatility and key price levels.

Amazon's Q3 earnings focus on AWS revenue and capex amid high options volatility and key price levels.

Amazon is set to report its Q3 earnings on October 29, with analysts expecting a slight earnings increase to $1.96 per share and a 12.3% revenue rise to $202.3 billion. Investors are closely watching AWS revenue and capital expenditure guidance, as t...

Company Fundamentals
Neutral
4 hours ago
Oracle stock jumps 5% as Google TPUs join Oracle Cloud and NVIDIA deal expands.

Oracle stock jumps 5% as Google TPUs join Oracle Cloud and NVIDIA deal expands.

Oracle's stock rose 5% after announcing that Google's Tensor Processing Units (TPUs) will be available on Oracle Cloud Infrastructure starting next year, marking the first time Google chips are offered on a hyperscale cloud outside Google. Additional...

Market News
Bullish
6 hours ago
Tech stocks rally on AI optimism ahead of big earnings and Fed meeting; Boeing struggles after order surprise.

Tech stocks rally on AI optimism ahead of big earnings and Fed meeting; Boeing struggles after order surprise.

Tech stocks are rebounding with renewed enthusiasm for AI ahead of major earnings reports from Alphabet, Microsoft, and Amazon, focusing on strong cloud growth. Boeing's stock falls sharply after unexpected changes to its order book, raising investor...

Bullish
6 hours ago
Amazon downgraded from strong buy to hold due to weak shareholder returns despite strong sales growth.

Amazon downgraded from strong buy to hold due to weak shareholder returns despite strong sales growth.

Amazon showed strong growth in net sales and operating income in Q2 2026, but these gains have not translated into sufficient value for shareholders. Analyst Ryan Canady downgraded Amazon's rating from 'strong buy' to 'hold' citing weak shareholder e...

Analyst Insights
Bearish
7 hours ago
banner-footerbanner-footer

Invest & Trade with
#1 Award-Winning Investment Super App