Amazon.com, Inc. (AMZN)

They report tomorrow. He targets $165. Buy some now, more at $118, then $112. Blown away that in Q3 they spent $11 billion just on AI--shows they believe in the coming results.

Reports next week. They have drastically cut costs which will reflect in free cash flow. He expects an upside surprise.

Their 2023 revenue is about $570 billion. It is dominant in e-commerce, AI, cloud services and digital streaming. Amazon's web services are gaining significant traction. It holds 1/3 of the world's cloud infrastructure market share. The high margin advertising business is also very good. Amazon Prime has over 200 million subscribers with a 97% renewal rate. It has outpaced the S&P 500 this year. They expect 25% EPS over the next few years.
Buy 61  Hold 2  Sell 0

Tons of promise in cloud, e-commerce and AI. They can turn on or off the earnings SPIGOTT by reinvesting in future growth. AMZN expanded heavily their warehouses during Covid, but that ecommerce boom didn't continue after Covid. Earnings will regress in coming year, but growth still lies ahead. Good valuation.

Has added to this. An essential company in the economy. It's had a good run, but is down to a PE worth buying for the long term.

He targets $71.87 or 45% lower. Pays no dividend. Saw a negative signal in the wider market last week.

He has sold a lot of tech to raise his cash to 10%. However, he has added to a few names: Amazon, Apple and Adobe in this current market weakness to put cash to work. He likes Adobe for its AI.  Yes, Amazon is one of the more expensive names out there, but today they announced they will invest in Ai to rival ChatGPT, along overdue move to get more into AI, a step in the right direction. Likes this move. 

With the inverted yield curve and high interest rates, you really have to go to the growth stocks with deep pockets. So many horses in the race, tremendous free cashflow. Hiring 250K in fulfillment just for Christmas. Still likes it despite its great run. His price target is $164.85. The runway just keeps going on for its total addressable market.

They've done well to keep their prices down in an inflationary time even at the expense of some suppliers. With high gas prices, it's cheaper to not drive to a store, but shop at Amazon Prime for free delivery.

It's too cheap now, but far more stable than peers like Alphabet and Apple. It's steady. He believes in it.

Over investment in warehousing starting to recede.
Growing into storage space.
AWS business growing strongly.
Good for long term investor.
Strong franchise.
Excellent management team.

Powerhouse in e-commerce, cloud services, digital streaming, and AI. Expansion into healthcare and logistics unlocks substantial growth and diversifies revenue streams. AWS is scaling quickly, now commanding about 1/3 of market share. High-margin ads should enhance profitability. Amazon Prime customer loyalty. Sees 25%+ EPS growth rate. Breaking out to new highs after a tough year last year. No dividend.

They had to scale up aggressively during Covid, then had to back off and re-structure costs.  E-commerce will continue to grow. The advertising business on the cloud side is skyrocketing which helps them since they know what people are buying.

Poised to have double-digit revenue growth each year for the next 3 years. Jeff Bezos stepping away has been a positive. Purchases like that of Whole Foods likely in the past. Focused on where they can leverage their scale, and it will finally become more of an earnings stock.

Just bought it. Is down 25% from its high, so the PE is reasonable at 40x now. It's a compounder, and AWS's growth was 12% vs. 11% in the prior. They have easy comps. Margins are strong. Retail is accelerating after fixing supply chain problems and lowering operational expenses. Upside is coming.