NASDAQ:AMZN

Amazon.com, Inc. (AMZN)

266.17
-4.70 (1.74%)
as of Nov 11, 2026, 9:00:00 pm Market Closed.
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COMMENT

Don't take the FAANG stocks for granted. Amazon bought MGM Studios for $8.45 billion which is a headscratcher. True, this deal could raise Amazon's entertainment profile, but MGM doesn't make great productions these days. But this amount isn't much for Amazon, and maybe they know something he doesn't. They certainly need to boost their sports presence.

PARTIAL BUY
A great company and well-managed. Tough to do valuation analysis though, so where are they headed? In the past, they don't divulge their plans much, though this is improving a little. That said, it's a great company.
BUY ON WEAKNESS
One of the best tech companies to buy. Trades at 35x 2023 but has 75% EPS growth. PEG is close to 1. If you are buying any tech stocks, it's the stock to buy. It will probably go higher in the next couple years.
TOP PICK

Good times will get even better over the next decade. #1 in web services, and this is profitable. Entering digital advertising, which has higher margins. Earnings will grow faster than revenues for the next 5 years. Not that expensive. Only real competitors are WMT and MSFT. No dividend. (Analysts’ price target is $4259.33)

BUY
It has been a beneficiary of the pandemic. If you look at next year's expected earnings, it will be trading at the most attractive valuation based on PE, as long as it sustains its current 20% growth. It will take a breather and then will continue up. It is looking bullish.
BUY

AMZN vs. GOOG Price target for GOOG of $2700, so a lift of about 17% from today. Whereas AMZN gives you a 25% lift from today to its price target of $4200. He'd recommend that you split your investment of new money 50/50 between the two. GOOG is a core holding, and the only time he trims is when the position gets beyond 5%.

BUY
It reports Tuesday. Amazon has to deliver huge cloud numbers and he believes they will. Amazon has been treading water for months because investors are worried about YOY comps when consumers were stuck at home. Amazon spent a lot of money to protect workers from Covid, but he thinks the stock still works.
PAST TOP PICK
(A Top Pick May 14/20, Up 41%) Had a natural advantage through the pandemic. Sometimes the most obvious investment is the best one. Earnings will report in next couple of weeks.
BUY
It's picked up and retained new customers during the pandemic. Also, Friday its unionization drive in Alabama failed.
COMMENT
Not cheap, but it's down for the year. Looking at a post-pandemic America, he presumes Amazon to keep many of the customers they picked up during the pandemic. They spent $4 billion to protect their workers.
COMMENT
He's watching the unionization drive workers in their Alabama warehouse. Workers are voting right now. Maybe that's why the stock didn't rally today.
COMMENT

Last mile delivery is on everyone's mind and a key component for the consumer. Walmart's in the hunt to do that. In that arena, if he had to choose between AMZN and WMT, he'd choose AMZN. It's coming from a position of power, whereas WMT is old school, bricks and mortar mentality.

PAST TOP PICK
(A Top Pick Feb 12/20, Up 43%) Great secular growth. Dominant. Stock has gone through a period of digestion over the last 6 months. He'd be shocked if it didn't accelerate coming out the recovery. Biggest risk is an antitrust issue. Little downside risk here. He'd have no trouble owning it here.
BUY
Great company. Hasn't done much for a while. People who used it heavily during the pandemic are not going away. An e-commerce and a logistics business. AWS is still growing. Advertising is really taking off.
TOP PICK
They continue to drive e-commerce delivery. Their cloud business is growing even faster. Both are highly profitable and growing. Cash flow will rise in the next two years. The target price is $1,000 higher than the current shares. (Analysts’ price target is $4051.63)
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