Amazon.com, Inc. (AMZN)

A name you can own as a core holding. Right in the middle of all the current themes. Doesn't mind exposure to the consumer, as there are deals to be found.

Amazon could got a lot higher. Their AWS is dominant, back with a great growth number. Advertising could be great for them.

Q1 was a high bar, easily cleared. AWS profitability accelerated, up 17% YOY. Consistent revenue growth from retail and advertising. FCF margins rising. Management confident it can balance profits now and future investments. One of the premier stocks, yet trades at only 32x 2025, growing at 31%. PEG ratio close to 1. Lots more to go. No dividend.

Overbuilt during pandemic, had to absorb fixed costs, has now grown into the expansion. Making really nice money on e-commerce. AWS has now returned to growth. Growing nicely into its valuation.

It has spent 20 years investing in infrastructure and is now in harvest mode for making profits, It expects to make $45 billion this year and $55 billion next year. It is able to expand its profits because it is growing in web services and advertising, and in fact is the third largest in online advertising. 85% pf spending is on the premises side and 15% on the cloud side. A switch in this ratio will increase revenue greatly. AI could cause even more expansion.

Growth is amazing and will accelerate. They have strength in cloud and data storage, and demand will only rise as companies use AI tools and that demand more cloud. He's happy to keep owning this.

It's a little too expensive. It comes down to valuation. It has a 3% free cash flow yield. (Forward PE is 43x.)

They report after the bell. He doesn't trade into the call. It's a good company with a good offering. Worth owning.

It reports Tuesday. Will they put up good ad revenues like Alphabet? They're spending alot on Nivida chips and AI. Have they reduced the cost of sending packages?

He prefers Microsoft. AI is here to stay, but valuations of these tech names have gotten ahead of themselves. Amazon is still growing with strong third-party ads and a cloud presence.

Overbuilt and overspent during Covid, but has grown into it. Has come off that trough. Fulfillment centres that were previously underutilized, are now going 24/7. AWS now upward trajectory, will dovetail with AI. Multiple's coming down. 

Currently in a long term up trend. Stock price at all time highs. Very positive on outlook of business. Take away is that higher interest rates not negative pressure on business. Very high amounts of cash on the balance sheet. Support levels around 175 very sustainable. Expecting stock price to move into the 200 price range. 

Really likes the business. Market has no patience right now, in this higher interest rate environment, for names that aren't profitable. Dominant in its markets. Now inflecting into profitability, rather than focusing just on growth, and that will continue. Valuation may continue to improve. Best logistics company in the world. Cloud, e-commerce, great ad business.

They use Nvidia's chips which drive down prices of web series while increasing speed and accuracy product recommendations to consumers.

In e-commerce, AMZN still has a bit more runway.