Ross HealyAmazon.com, Inc.AMZNCOMMENTMar 14, 2014

New lease on life in the last year. Natural beneficiary of AI and data centres. At these levels, the kind of name you just hold your nose and buy. Not extremely expensive.

She bought more based on the 27x forward PE vs. the 5-year average of 34x and 10-year average of 45x, and is trying on 11x EBITDA. Same-store sales on Prime Day were +9.3%, amazing.

They are designing their own AI chips, which was phenomenal news. Definitely a stock to watch.

He expects Amazon and Google to win the AI race. They have the money to build data centres and hire the best talent. He trims when the share price rises, and buys when the price declines. AMZN is one of the best companies in the world and is a long-term hold. Their retail and cloud (the leader) businesses are growing.

Its highest-margin businesses are the ones that are growing the most. Raising a lot of capital, putting pressure on the stock. 

His preference is MSFT, and he'd buy today. Valuation is ~20x PE -- very fair valuation for business with good outlook for earnings growth for next 3-5 years. A bit more value than AMZN right now. Business model supports a better compounding over the long run, and generates significantly more FCF. Late to the AI race, and that's the reason for the selloff.

No issues with AMZN. Very well run, targeting new markets. You can't own all the tech companies, so you have to pick your spots.

Looking at a longer-term chart, not a huge growth rate for a company of this size with its level of market share in cloud computing. Recent pop, but he's troubled by capex spending and its issuing debt. Have to ask what's the value proposition? 

If you own it, don't sell, but don't back up the truck either.

His favourites right now are AMZN, NVDA, and MSFT. They're all going higher.

On the capex spend, sometimes it's a leap of faith. You're relying on these companies having some of the smartest people in the world with the most disposable capital. And those people really believe it's not a bridge to nowhere.

Undoubtedly, some companies are overdoing it and there will be another side to the mountain. But we don't know when that will be.

A sound growth stock. Are starting to offer supply chain services to customers. 

AWS is racking up big client wins and is accelerating pace, because it has been investing heavily in infrastructure (that's paying off).

They reported a strong quarter last week, driven by AWS and AI. AWS has an annual revenue run rate of $150 billion. AMZN keeps adding to the story on a regular basis. They are setting up satellites and offering their supply chain services anyone. Today, they announced a new venture in logistics.

They reported today. Their AWS grew 28%, insane, as revenues and EPS also beat.

He'd put new $$ in today. Blip on the chart from $240 to $210 was when they raised capex on AI spending. Investors have now come around.

Viewers are probably thinking, "Aw, Kim, you picked all the big companies." But at the stage of where the market is, these big companies can definitely go higher in price. Even if something comes out of left field, these companies have the ability to work through it.

Tremendous AI momentum. AWS is a cash cow. Also has advertising; a hidden moat, because they know what we're buying. No dividend.