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NASDAQ:AMZN
This summary was created by AI, based on 80 opinions in the last 12 months.
Experts provide a mixed perspective on Amazon.com, Inc. (AMZN) as it continues to navigate through its diverse business channels, including e-commerce, Amazon Web Services (AWS), and AI advancements. While AWS shows promising growth and significant contributions to profits, concerns about high capital expenditures and job cuts raise questions regarding future profitability. The retail sector is reinvigorating, contributing to overall stability. Investment in AI and automation is seen as a long-term strength, yet there is caution due to current market sentiment which points toward a wait-and-see approach. Despite being perceived as somewhat 'tired,' many analysts still believe in AMZN's strong fundamentals and future growth potential in a shifting landscape, especially in AI and cloud computing.
Two completely different horses. Amazon is more innovative so it could have higher growth, but Microsoft has new upgrades, new contracts and is more stable. He wouldn't own either because FANGS make up about 20% of the index funds, so they will go down more than the others. Would buy half a position and add more depending. On a risk basis, it's too exposed to the overall market.
One of his favourite tech names that well generate a lot of free cash flow into 2021 like Microsoft. They're reinvesting aggressively, pushing into delivery through the Prime program that they're also pushing with success. All tech has come under pressure and there have been allegations of poorly paying their workers; they've raised their minimum wage to $15/hour, but under tough working conditions. Plus, there's regulatory scrutiny over them using data from third-party vendors. But he consider this short-term noise.
AMZN vs MSFT? AMZN is a great company, but he has been out for about 12 months as they are trying to figure out their operating expenses. He will continue to watch it, but there could be some regulatory overhang yet to come -- especially for their web services. MSFT has moved to cloud services, allowing them to seamlessly download software -- a very consistently profitable business -- it makes it almost like a utility.
A lot of negativity around Amazon isn't specific to Amazon. Rather, the tech companies are coming under scrutiny for anti-trust. He doesn't know how this will play out. He owns Google and MSFT instead, but keep your eye on Amazon, which are so disrupted. Also, their fundamentals keep improving, reinvesting constantly to be disruptive.