Amazon.com, Inc. (AMZN)

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.

Expectations are high, but their report next week will win: North American retail margins could return to around 5%, AWS will meet numbers and their logistics is taking market share and has synergy. Would definitely buy more if shares fall.

Reacted proactively to Temu moving up the chain. Going to start offering a direct relationship, with a 9-11 day timeframe. If you have Prime, you can get your parcel in a day or two. Where you have to be for the bulletproof e-commerce story.

He's constructive on it. Profit-drivers are finally hitting. Remember that it's really 2 big pieces stapled together. AWS was going through cloud-optimization headwinds, but now moving to the other side of that. And e-commerce retail, where it's really starting to hit it off the wall. Excited about both parts. Range-bound over the last several years, but going to start seeing more of an upward trajectory.

Does not own shares. Very strong business with eCommerce business and cloud computing service. Very hard to purchase at a reasonable price. A strong company, but sees better opportunity elsewhere. Shift from bricks and mortar - good for business. 

Reported record Prime Day sales. Seeing a rotation out of some of the Magnificent 7, but that's just day-to-day noise. Do you think AMZN will be selling more or fewer products to your house in the future? Probably more. No dividend.

Likes the fixed-cost structure, amazing operating leverage, an inflection in margins in US and international retail. Cloud growth, tremendous advertising business. So many tailwinds. Valuation of 21x EBITDA quite inexpensive. Expects double-digit earnings growth for many years to come. Of all the Mag 7's, in the best position for growth going forward.

They've rebounded from overbuilding fulfillment cetnres during Covid and now their e-commerce business is doing very well. AWS also doing well. They have a new AI offering. Earnings are rising faster than the stock price, so its PE is actually declining. They have their fingers in many pies.