
NASDAQ:AMZN
(A Top Pick Aug 19/19, Up 65%) It continues to invest money at very high rates of return and enjoys opportunity in retail and cloud, both of which will grow. It still trades at a reasonable valuation on a free cash flow basis. They're attracting ad revenue to rival its peers like Google. Buy this on a pullback.
Stock's done well. He took profits. One concern is it's expensive to its peer group. Momentum is behind the stock. Alibaba is one to consider, at only 30x PE, with a 20-25% growth rate.
His rule: buy a tech stock that's 25% off highs during the current tech correction. For Amazon, this means buying at $2,660. Amazon is up 62% YTD vs. Apple's 46%. So, this is a reasonable entry point, at least a partial buy.