Amazon.com, Inc. (AMZN)

In 2022, investors lost their minds when Mag 7 companies were spending huge to solidify their moats. AMZN continues to fine-tune their logistics network, Prime and ad (both growing well), while the data centre business is a no-brainer. Well-diversified. This CEO is taking Amazon to the next level.

Likes it very much. Some hiccups from Covid buildout, but they've grown into it. Profitability rising quite dramatically. AWS doing quite well, #1 or #2 in cloud. Prime streaming also doing well. Well priced, excellent growth metrics.

Benefits from the gen-AI revolution, though 70% of their earnings come from AWS, and the rest from their e-commerce. His price target is $246. It's one of his top holdings, though he sometimes buys calls. Buy around $210, but doesn't see it falling below $200.

It makes most of its money on the cloud which is the biggest growing, and highest margin part of the business. The delivery part is OK and data from that will do well in using AI to monetize it.

Add on pullbacks in 2025. It's not only an AWS story. It will continue to work in 2025.

The FTC head changed today, so he expects the lawsuit against Amazon to end under the new head. Amazon Prime is the greatest bargain in the world. Amazon is great at what it does, not a monopoly. Rallied 2.32% today.

The caller was selling his Oracle and wanted to buy Google or Amazon. He would choose Google as the most attractive on valuation, growth and consistency. Amazon is under some pressure with the anti-trust situation.

One of his 4 (AMZN, META, GOOG, and MSFT) main holdings in the technology space.

Cloud component continues to grow, especially with growth in AI despite all the capex needed on that side. Not everyone is in the cloud yet. Ad business has exploded, growth will continue. Retail business is incredible, the logistics alone is very valuable.

His favourite technical indicator is probably volume-weighted average price, looking at a 3-4 year range. Helps to identify where a lot of people were buying. You can use that as a support level, and sometimes as resistance.

Going back to 2016, he can see that the most average price of this stock is $160, mostly because of where it traded from 2020-2022. On a shorter timeframe, it's done a lot of trading around the $165 level. Right now, he likes to keep it simple and just look at trends. Stock's done well, taken a pause, but broken above so we have new support right where we are right now ~$198.

Good stock to take a position in.

12-month price target of $233. He holds ~5.5-6% position in his fund. Performed extremely well coming out of earnings. Excels because it has so many horses in the race from AWS to Other Bets to the upcoming great season for fulfillments. Don't worry about Bezos selling shares, as he still has a lot left.

They're doing many things right. Their last quarter crushed it. He expects a good Christmas for them. Europe will move them higher.

Buy on a serious pullback. They had 19% growth in AWS as well as ads. They can deliver prescription drugs within a day to half the US. 

Unassailable, ubiquitous, global business. AWS business is less appreciated by consumers, but just as impressive as e-commerce and probably growing faster. Valuation rich, expectations high. Over a long cycle, will probably keep growing. He's chosen other Mag 7 horses.

They report Thursday. There's no sign that retail is improving, and they issued a downbeat forecast. Never count them out, but he doesn't like the risk/reward. Kuiper could hurt the report.