Amazon.com, Inc. (AMZN)

Owns GOOG and AMZN, but not MSFT. All are spending at least $100B this year. It's going to be a show-me story. Investors really want to see if spending will result in future earnings. He thinks it will, but there's a bit of fogginess around that. 

Plus, markets are shifting away from mega-cap tech, putting pressure on some of these names. If your time horizon is 5 years, not 1, you should do well with most of these hyperscaler names.

AWS cloud services business is phenomenal. But most people focus on its online businesses, which is significantly less profitable. Likes AWS, but likes the other businesses less. While he has no problems with it, there are better opportunities elsewhere.

He's buying it here. Investors are wondering if returns will be good enough to justify all the spending. But it doesn't have a choice if it wants to meet customer demand in AWS and not lose market share over time. 

There's a lot to this business, and huge growth continues across its many divisions. Brilliantly managed. Continues to deliver double-digit growth.

It reported this week. He believes management can deliver, but you need faith to own this. It will spend a lot more on AI than the street expected. Shocking. This overshadowed positives like strong growth in AWS. However operating guidance for this quarter came in much worse than expected. He can't recommend this now. Shares are -12% this week. Their investments will pay off eventually.

Moved sideways for last 6-8 months, but then a pretty clean breakout from that over the last 2 weeks. Seeing weakness, which is a retest -- a bounce off the retest level is usually a precursor to the stock performing exceptionally well. 

Continues to be ingrained in day-to-day life. Will be part of AI buildout and a major benefactor of that technology. No dividend.

That's not how he plays the game. Many times it's reported and has either gone up 10-20% or gone down 10-20%. It's all about whether it meets expectations and what's said on the conference call. 

One of the best businesses in the world. Continues to add value. Launching more in groceries this year. Attractively priced for new investors.

It reports Thursday. It's become a battleground. When it reports, it tends to fade. He still believes in it, though it hasn't been a good returner.

Key will be how well it executes on new chip that it's introducing. Stock hasn't done that well over past year, so this would be a good entry point, especially if the execution goes well. Doesn't own, as small-cap plays should have more upside in next 2-3 years.

North American retail, international retail and AWS are strong businesses. They lead in the cloud with AWS. Will be a prime beneficiary of robotics. Trades at 30x PE at 15% EPS growth.

Lots going on with the Mag 7 right now. YTD, up 3%. Announcing more layoffs yet again -- to pay for the capex being spent. Lagged both GOOG and MSFT in terms of hyperscalers, AI, and data centres last year; due to AWS not growing as it used to. E-commerce margins aren't growing due to big costs delivering that final mile.

He favours MSFT as a play on data centres and quantum computing. Better that investors choose between GOOG and MSFT as better opportunities moving forward.

Only Google and Nvidia in the Mag 7 outperformed the S&P last year. Amazon gained only 5.2%. Sometimes good companies aren't getting recognition. Be patient and it will pay off. Their e-commerce commands 41% of online sales. AWS controls 30% of the cloud business. Fundamentals are good.

It is at a good valuation for an entry point. Has three main businesses in Europe, US and AWS. The main driver is AWS and the world is moving to digitization. It is well positioned and well priced in growth for this. Growth over the past 10 years is quite staggering. It is well capitalized - he would like it to pay a dividend but it probably won't. May sell off a division.       Buy 81, Hold 4, Sell 0

What he really likes is that it lagged the other Mag 7's and the S&P over the last 12 months. Yet fundamentals have only been getting better. Today it's not about e-commerce, but more about the AWS cloud system (primary driver of profitability). Earnings will grow ~19%, and stock's trading ~30x forward PE -- that's a PEG of only 1.5x, pretty inexpensive. 

Use of AI and robotics in fulfillment centres is greater than ever. This lowers costs and drives operating margins higher. Long-term trends on the chart remain intact. No dividend.