Amazon.com, Inc. (AMZN-Q)

Have to compete with shipping to the closest store. Unionization threat. E-commerce has pretty slim margins. AWS cloud computing growth isn't what it once was 5-10 years ago -- law of diminishing returns. He likes companies that take care of their staff and customers, and this isn't one of them. Dividend not great. Tariffs will bring lots of volatility to the Mag 7. More of a trade. Not for retirees.

He owns MSFT.

Very positive outlook, based on generative AI trend.

No matter what happens with tariffs, when you think about retail there are no companies more dominant than AMZN, COST and WMT. AMZN is by far at the biggest discount to peers. Also, leading cloud computing in AWS with stable and expanding margins. Best diversification of cashflow.

Whatever the retail environment looks like, they'll win. No dividend.

AWS rose 17% YOY, but missed, but more Nvidia chips would have led to a beat. Believes in this long term.

The consumer-related companies are taking it on the chin, so AMZN's retail side is taking a hit. Cloud business is great. Imports all its goods, and can more easily switch to importing from countries other than China. He's not buying much of anything now, but if he were, he'd probably pick this one.

Loves the name longer term, but sold a month back. Disappointing when you pick a stock that's the belle of the ball until the Trump wrecking ball comes along. Growing ~19%, trading at 23x. Not expensive. Analysts are assuming clarity; if we don't get it, estimates will fall. 

Be careful. Never forget that lots of people have made stunning amounts of money for a long period of time. These stocks don't owe you anything. If you're going to buy, do it incrementally.

They report Thursday. Retail is consolidating into three giants: this, Costo and Walmart. But Amazon has major tariff problems with China, though he likes what he hears about their retail business outside China.

This quarter should be OK. Last quarter saw growth by double digits in retail, cloud, and advertising. Increased same-day delivery by 60%, pretty incredible. Great business. Tariffs on goods from China can be passed on to customers. In a bad economic environment, consumers love the cheaper prices.

It's the next quarter where we might see some volatility around the stock price.

Large-cap tech names have seen big pullbacks. This name is off by close to 30%, valuation now more attractive. She owns it in a US-equity, growth-focused fund. AWS is the leader in cloud, helps offset lower retail margins. 

Capex increasing to build out data centres; worries that overspending will not earn great returns in the near term. Concern that tariffs and a slower economy may impact retail spending. Have to wait and see the tariff story over the next 90 days.

He'd prefer this to SHOP, as AMZN is way more broadly diversified. Plus its cloud business is a massive business. Because of cyberattacks, a company of any size is forced to use cloud services either from AMZN or MSFT. Fears of recession are hitting all retailers and e-tailers.

Is -28% from February's high. The fear is that tariffs will crush their core e-commerce business; most of their goods are made overseas which will get a lot more expensive. But they've become more of a consumer staples business like Walmart, and they have the scale to force the suppliers to eat the tariffs. They also have a sticky Prime business and AWS has enough to growth offset weakness in retail. Trades at 25x PE, half its historical average.

Acting pretty well today. Indicators are trying to turn up, meaning some of the selling is maxed out and people are stepping in. Support around $175, then heavy support around $155. After that, support level is ~$110.

Benefits from people moving to the cloud and AI. Makes so much $$ doing that already, and the world isn't going to be doing any less in those areas. AMZN will continue to be a dominant player in those areas. No dividend.

Frustrating, as stock's down mainly due to macro, not to the company itself. Beat on recent quarter. AWS is really growing from AI tailwinds. People may be concerned about level of AI spend at 35% of capex. Growing at 20% a year, trading at 20x 2027 PE. 

This is where you'd want to buy if there wasn't all this macro noise. Things could get worse if the administration doesn't pull back. Good, long-term name at these levels. Buy here, forget about it for 10 years.

The PE is now below Walmart's. They have so much data and are developing agentic AI, the next wave in tech. He targets $255.