NASDAQ:AMZN

Amazon.com, Inc. (AMZN)

250.87
-11.50 (4.38%)
as of Oct 22, 2026, 5:25:00 pm Market Open.
1605 watching
0
STRONG BUY
It has just pulled back off recent new highs. He thinks its a great time to buy to own over the next 12 months.
COMMENT

MSFT vs. Amazon No, they don't compete with each other. Amazon is the best cloud host, but not for small/medium-sized businesses. Instead, MSFT fills this gap very well, at they collect recurring revenue doing this, like a utility. This stabilizes their margins and increases MSFT's growth.

HOLD
He sees them still as an immature company, but still holds a little piece.
BUY
Very expensive, but the growth rate is so high. Still a very compelling story.
PARTIAL SELL
Lighten up now as it approaches new highs. It's never risen above current prices.
COMMENT

Will the U.S. DOJ break up Amazon and other tech companies? That's a VERY long process. It took 10 years in the case of Microsoft. A complicated process. Is Amazon hurting consumers? No. Consumers are getting cheap goods conveniently. In Amazon's favour, they still make up a small part of the retail landscape. A caveat: a protracted battle against the DOJ could stifle Amazon's growth and distract them from progressing.

BUY
The chances of being broken up depend on who wins the US federal election and even then it would be difficult. The revenue growth is slowing down to 17-18% but the profit margins are growing faster than revenues.
BUY
Value investors buy stocks that trade at a discount to their true value. Amazon disrupts every business they enter, like cosmetics that they announced today, and will dominate more of online retail overall. People love their instant shipping of goods. The risk are government anti-trust laws. So, the value is here.
BUY

Q1 revenue was up 19% year over year, and he models 35% EPS growth. It's multiple is high now at 47x, but but will 26x in 2021. In the next 2-3 years, this continues to go well. Buy this when others fear it.

TOP PICK
An unusual pick for him: Amazon doesn't pay a dividend and trades at a massive 70x forward earnings. What works for him is that Amazon has a huge future ahead. It's increasingly an advertiser; it makes a lot of money in Prime memberships; it pioneered cloud computing which is still in its infancy. He finally pulled the trigger on this after five years of watching it. (Analysts’ price target is $2249.27)
BUY
He likes it and has done so for a long time. He used to not be comfortable with the valuation but has not wrapped his head around it. The cloud business has been the leader in cloud and is almost utility-like in nature. Growth is slowing due to the law of large numbers. You can have a lot of confidence in management.
BUY
He would not run a mile from the stock unless they did something crazy. He cannot find too many things against them except regulatory issues that can't be predicted.
DON'T BUY
It has a very high PE. Also, its FMV is 80% lower than its current stock price--even with its spectacular earnings. It's not cheap at all. It's trading at 16x its book value. The problem with Amazon is that you don't know what the real earnings ought to be. $1,745 is its break point, near where it is now. All FAANGs are rolling over, and he sees Amazon going lower.
BUY
Leading, innovating. Getting into health care. Lots of exciting ideas. A name for decades to come. He has 3.5% on his core portfolios positioned on this name.
BUY
Has run up in value. Will we see a split? He thinks not. Likes it and the price at this stage. A growth company you want in the portfolio. Good value long-term.
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