Amazon.com, Inc. (AMZN)

Lots of opportunity in A.I. area. Recognition in AI tech not as widely recognized by markets. Expecting growth into A.I. presence. Power and scale of company will allow company to compete in tech of A.I. 

Overspent during the pandemic, now pulling back. Jewel is AWS, which subsidizes the retail operations, as those margins are quite low at around 3%. Margins on AWS are 20-25%. Ad business is growing. She plays the cloud offerings with other names such as GOOG or MSFT.

AI could reignite their cloud business by using AI.

It is the biggest player in e-commerce and has a variety of products. Soon it can even sell cars. Also it is growing its cloud business. In addition it has a huge advertising business which is competing with Google and others. It has cut back on costs and is well structured.

Was a lot to dislike--terrible quarter, high expenses and too many workers. But their last quarter showed amazing ad revenues, helped by cutting costs. After Microsoft is next megatech name to go higher.

Heading into shopping season. Prime is a bargain with next-day shipping.

The question was on his preference between the two companies, Alibaba didn't get traction and there has been a disconnect between their numbers and the stock price. He prefers Amazon.

Sitting on a ton of cash. AWS is a standalone business, though growth is slowing a bit and could hit to 3rd place in cloud behind Microsoft and maybe Alphabet. AWs remains a dominant business, while their delivery business is a cash cow. Add to that Prime and streaming businesses. But the valuation is high. The company continues to invest in R&D. On his radar screen, but not at the top.

Leans towards AMZN, based on it having retail but also AWS. AI investments should help both AWS and retail customers. More compound potential because of different business streams.

COST has been well developed, but not sure how much more juice there is.

AWS cloud computing business very strong. Would prefer other names like Microsoft and Google. Does not think eCommerce will be as strong as in the past. Not buying at this time. Online margins very thin. 

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.