Amazon.com, Inc. (AMZN)

Will be dominant for a long time. Got stopped out of this one. It's in the Mag 7 cohort, challenges of over-ownership that need to be worked off. Not one of the top RSI names. Great business, he'll watch for better spots.

His 3 big holdings are DOL, WMT and COST.

On April 29, 2022, Amazon lost $206 billion in market cap and has since rallied 39%, beating the S&P's 33%.

Excellent business, and would recommend investing - even today. Very strong tech in A.I., eCommerce and web services. Strong management team with excellent brand value. Fulfillment centers are starting to turn profitable. Expecting higher earnings going forward. Would recommend holding for the long term. 

Many hated their recent quarter, fearing a tapped-out consumer, but an analyst today said there was hope for same-day consumable sales.

Their sell-off after earnings made no sense. Shares are already up a lot. He believes in this long-term.

Added on the recent pull-back. So many ways to win here: cloud, retail. Loves it.

He owns a lot of this. Global leader. Retail business margin is 3%. Margin of its new businesses is 70-80%. Rising profitability over time.

All the retail stuff doesn't really make much money. It's all about AWS, the crown jewel; massively profitable, growing like crazy. Valuation north of 30x; enter on a dip.

They delivered an imperfect quarter, sure, but he believes them when they say that the consumer is holding back because of this wild political situation and the Olympics. He trusts them and their reasoning.

They just reported a bad quarter with lousy guidance and shares are sliding today. It's a recent position, but he won't panic. If we enter a recession, Amazon will gain market share in everything it is doing. He would buy this today, a great entry point. 

Under the new CEO, their operating margins have been growing like crazy. AWS margins are 35% and this has been re-accelerating. E-commerce and ad business and topline all had slight misses. But EPS growth is still trending higher. This is a buying opportunity.

Amazon and Facebook will see monetization of AI in ad spending. Amazon's operating cash flow was up 75% while free cash flow was $8 billion in 2023. This is a cash machine. It's an interesting to get into now; the market is totally misreading their report of last night. Retail numbers don't matter for Amazon.

Their report disappointed in saying that they will need to spend more and will take a lot longer to monetize AI.

He loves companies that spend on the future AND have positive cash flow. They report next week.

He expects them to guide higher. Thinks AWS is doing great. They report next week. The GDP print shows that the consumer is still spending.