NASDAQ:AMZN

Amazon.com, Inc. (AMZN)

250.23
-12.14 (4.63%)
as of Oct 22, 2026, 6:26:00 pm Market Open.
1605 watching
0
TOP PICK
One-day delivery will take them time to build, and the stock may tread water along with the wider market for the next 6 months. But after that, things look good. A great business. In a few years there'll be a free cash flow ramp after they build this large e-commerce infrastructure with next-day delivery. They can also grow their ad and cloud businesses further. Sees 37% EPS growth at 20x earnings. (Analysts’ price target is $2178.24)
DON'T BUY
They are very independent and don't share all the information that the market wants to see. He does not see that as being bad in this case and this helps them avoid the short term impulses of the analysts. It is closing in a trillion dollar market cap and still growing above average. Earnings are not growing as fast, but that is the strategy -- be a market disrupter. He would not invest in this due to the lack of transparency.
HOLD
He bought it on Christmas Eve last year when it hit its low for that period. He recommends still continuing to hold it. It is not hitting new highs because they are ramping up expenses to work on their one-day-delivery. It is believed when they get there they will make up the decline.
COMMENT

Microsoft had a good earnings quarterly report. What he doesn't like is that it trades 25 times earnings, when earnings are expected to grow at 10%. He thinks there are better growth orientated stocks out there like Amazon, Google or Apple trading at better valuations.

HOLD

One of their top 3 holdings. It has been disappointing over the last few months. His price target is $2300. The company is difficult to pin down as it continues to disrupt other industries. It is much like Google. The cash cow part of the business is their cloud service segment. A stock to sit on and wait.

TOP PICK
Continues to gain share in retail and other business. One day delivery has been a huge success. Doesn't see anything stopping them. Leader in the cloud business. It's expensive but the cash flow is catching up with the stock price very quickly. May go flat for a year or two but the cash flow will push the stock higher again. (Analysts’ price target is $2178.99)
SELL
Sold out recently. Great long term, but doesn't want to be there right now. Dead money for a while. Earnings have come down quite a bit. Lots of investment in moving to 1-day Prime and getting that going. Stock hasn't done well in the last year or so. Underperforming since mid 2018.
PAST TOP PICK
(A Top Pick Dec 14/18, Up 11%) It is still in the Top 5 for him and he has a target of $2300. The retail sector is primed for growth and they are involved in cloud technology. Their subscription segment is growing and it is paying off, allowing more consistent and growing revenues.
TOP PICK
They have 30% annual growth and have for years. It does not look like anyone can knock them off their perch. A must hold in every portfolio. Yield 0% (Analysts’ price target is $2194.83)
TOP PICK
Synthetic long Amazon Buy 1800 call that expires Jan. 2021 at $224, sell 1800 put -$193, net $31/share, so $51 cost out of pocket. Amazon is the best consumer play around.
TOP PICK
Everyone's concerned. Very expensive at 36x. The e-commerce platform continues to grow. Growth of cloud and other sectors as well. He sees it grow more slowly in the near term but will perform over time.
PAST TOP PICK
(A Top Pick Nov 07/18, Up 1%) Costs have gone up for 1-day shipping. Name is strong, clould business is strong. Prime members expected to grow. Long runway for growth as it grows outside North American markets. Risks include spending and regulatory changes. He owns it, but is keeping a close eye on it.
DON'T BUY
He sees potential for further growth. Its book value is $107 -- about 1/10th of its price. A recession would hurt this stock badly. The upside is far less than the potential downside. Their growth will be impacted by the upcoming recession. He would avoid this one.
DON'T BUY
The technicals behind the FAANGs are poor, rolling over. Amazon's PE is 57x, while PB is 15x--very expensive. The market has been holding but this has been slipping lower. The FAANGs have had their day in the sun.
BUY

AMZN-Q vs. MSFT-Q. He owns MSFT-Q so does not prefer AMZN-Q. AMZN-Q he is looking at. They have so many opportunities such as healthcare. They are building their revenues at the 15-20% range.

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