Danesh RohintonAmazon.com, Inc.AMZNBUYJul 25, 2024

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.

Peeled back his position due to concerns about the market in general. Wonderful consumer business, fabulous web services business. The hyperscalers are spending all this $$ on data centres, but we can't tell who the winner will be. The stock is tired, same as with the other Mag 7's. 

Natural gas will be a winner ;)  That's a better play. See his Top Picks.

Heavy investments in AI took the stock down. He's sees spending not as a weakness, but as a source of strength by leaning into its scale and distribution advantages. Strongly advocates it as a Buy today.

Way to get exposure to both e-commerce and AI buildout. AWS powers a large part of the internet, and increasingly becoming key to companies looking to deploy AI into real-world applications. Evolving from just a cloud story to a platform enabling AI to scale. 

Holding despite trading sideways. Will be a leader in the space.

Was seen as AI laggard, but AWS has now caught up considerably. Believes it'll still be a winner going forward. It's a lot easier to figure out how to use a new tool with your existing business than to start from scratch, and the dominant players are already there.

Has been adding to this. AWS leads in the cloud while their retail business is starting to make decent money in North America. Growth is slowing but margins are improving. Likes it long term. Valuation is appealing.

Trades ~17x PE for 2028 for 20% growth. Very reasonable PEG ratio. Concern is that spending is in overdrive but returns won't be sufficient. At forefront of AI revolution. AWS spinout could add another $35 per share.