Danesh Rohinton Amazon.com, Inc. AMZN-Q BUY Sep 30, 2024

He owns it for their data centre build. 

Cloud business is the growth driver, sort of subsidizing the retail operations. Retail margins are much lower, only mid-high single digits. Using automation to try to decrease cost of delivery. Prime memberships provide nice recurring revenue stream. Investing in AI, which will benefit retail. Very well run and focused. Hasn't fully recovered from fears of tariffs impacting volumes.

In her firm's growth equity fund. But the pullback is prompting her to consider it for segregated accounts.

Since mid-May this has formed a golden cross (the 50-day moving average crosses the 200-day) based on a solid uptrend. The MACD momentum line now shows a buy signal. Also, the Chaikin Money Flow (CMF) measures buying and selling pressure, and it's positive (the buyers haven't gone anywhere). Trading volumes remain strong. Prime Day is in full swing now, though Wall Street could be disappointed with sales numbers (he thinks it's too soon to tell). Lang targets $260-270, though he doubts that.

AWS is growing again, AI is taking share and their e-commerce is humming along. Firing on all cylinders. Like Uber, they are growing into their numbers (PE) after investing in their future.

He'd absolutely buy for a long-term hold. One of the 3 major players in cloud. E-commerce division is still a loss leader, but still such a draw and massive threat to rest of retail. Generating free cashflow, valuation has come down, lots of growth going forward. 

Great business. Has AWS, which is a huge piece of the business. Also direct-to-consumer, so that part continues to grow in this time of inflation. Valuation is not stretched, so he'd be looking at this one among the Mag 7.

Yes, those earnings were disappointing. Still came ahead of what was expected, but not to the same tune as MSFT's or GOOG's. Just a matter of time before it ramps up again. Will continue spending on data centres, and this will pay off. 

Sees a parallel to Q2 earnings for MSFT last year. Azure disappointed, stock dropped ~10-15%. Since then, it's up ~25-30%. Same thing should happen to AMZN in about a year.

This is the one of the group that's going to do the best going forward. With an understanding of tariffs going forward, AMZN will price accordingly; so the e-commerce side of the business will be more refined and its outlook better. No dividend.

Its earnings disappointed. Their AWS was the only area that you didn't expect to underperform; guidance and margins disappointed.

Likes the whole AI play, it'll change the world. Biggest player in outsource infrastructure for computers; for example, SLF uses AMZN for its back office. Cheaper than the rest of the Mag 7. Buying opportunity and will catch up. AWS and advertising have much higher margins than the retail segment and are growing at a faster rate. No dividend.