Christopher Blumas Amazon.com, Inc. AMZN-Q WATCH Sep 17, 2019

Has benefitted from gen AI growth. Dominant, they just surpassed Walmart as the biggest global retailer. They continue to invest in faster delivery, and are increasing Prime memberships. He sees strong growth in profits, taking market share in the cloud. He earns 10% net margins, which he expects to double in 6-7 years. Shares have pulled back 15% recently.

The ones that are nice to King Trump. He'd hope that TSLA and AAPL would escape additional tariffs on China. 

Except for TSLA, the other Mag 6 have come down to very reasonable valuations. For example, AMZN's trading at a discount to WMT, which makes no sense. GOOG is trading at 19x earnings. Thinks AAPL growth will be double digit. This is your chance to buy quality companies at reasonable valuations. See his Top Picks.

Backlashing on AMZN may not be the way to do it if you're a proud Canadian, as a lot of hard-working Canadians have actually built their businesses via AMZM. We're small potatoes in the grand scheme of things.

He's looking for the chance to buy, but it's not cheap enough. He'd probably take a stab if it dropped another 10-15%, with a very long-term view.

Likes the chart. 2024 was bananas, and the stock went parabolic and probably well over 15% above its 200-day MA. So it had to fall. Possibly testing the trendline. He needs to see evidence of a bounce, but if it did he'd be all over it. Great company.

Paying 30x PE for 14-15% growth. You're buying this for the cloud, which is growing very quickly. Slightly cheaper than AAPL today, so he'd pick this one.

The caller was hoping for a 10% per year return and Amazon is growing earnings faster than 10% and revenue at least 10%. Tech stocks across the board have sold off and the P/E is now 31. Its valuation today is the same as Walmart which is over-priced. A couple of years ago it decide to relax its constant investment.

AWS and Prime are doing well as well as its ad business.

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.

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.

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.