Amazon.com, Inc. (AMZN)

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.

Meta's gross margins are 80% vs. Amazon's 50%. Meta trades at 25x vs. Amazon 37x. So, wouldn't money be rotating out of Amazon into Meta? It hasn't.

Will go higher. They beat top and bottom lines. EPS was ahead. He predicts Amazon along with one or two others, to the globe's biggest AI player. AWS is the biggest cloud, and will boast the most tools and users for AI solutions; they will monetize early and better than all others. They have the 3rd-largest ad business in the world, growing this past quarter. They benefit in AI long-term, with an installed user base already (don't need to attract people).

Amazon is down 4% today. Who cares? It will recover and march higher. Amazon has trades at a high PE for a long time and is now lower than it's ever been.

Very high trading multiple makes it hard to justify investment. If the revenues do not grow in line with current valuation - will be rude awakening for investors (share price will fall sharply). If share price was to fall to ~20x earnings, would be a good time to buy. Business is very strong - just a matter of valuation. 

Finally caught fire, and for good reason. Monetizing their efforts, which is flowing to the bottom line. EPS starting to expand more rapidly. Multiple's fallen from stratospheric levels down to mid-40s; should fall rapidly from here, as EPS likely to grow at 20+% over the next few years. 

On e-commerce, has grown into fulfillment centre development. Mammoth AI opportunity. Reports on Thursday -- watch the AWS cloud number. Last week, MSFT was a bit shy on Azure. No dividend.

It report Thursday. He expects terrific numbers, but they may not need to be that terrific to justify its recent rally. Maybe wait till after the quarter.

Owns shares in the company. Excellent company with strong margins and operational performance. Ability to generate cash flow unparalleled. Amazon Web Services very high margins. Current valuation is less than companies like Costco. Profits starting to appear in places like Europe.  

Still a core holding. AWS is the biggest player in data storage, and this will continue. Advertising has better margins  than retail, yet they continue to take market share in retail. Entering higher-margin businesses, with track record of winning every time they do.

Investing so heavily is holding up the PE. If they stopped that, growth would slow down and earnings would shoot up. That's the price of growth.

Trades at a reasonable valuation. Such a broad company. Their ad business continues to grow and they will remain competitive in data centres (they and Google have the best infrastructure in data centres). Prefers Amazon for its valuation and diversification.

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.