Amazon.com, Inc. (AMZN)

He bets that in 2026 Amazon will do what Alphabet did this year and Apple since May. Is not talking numbers. No company has as many pistons firing as this: AWS, AI investments, retail business, the logistics business.

Shares are in no-man's land and up less than 4% this year, but it will go higher in the future. It trades at 32x PE, and 29x forward, with 11% EPS growth for 2026, not cheap, but historically cheap. It has always been a high capex company, but not outrageously so. They put in 3-straight higher lows. One day it will break $238. Be ready for it.

Trades at a reasonable 26x PE for 2026. It boasts e-commerce (a huge 41% market share), AWS (#1 in cloud computing) and AI which has huge possibilities. We are not in an internet bubble.

AWS amounts to only 20% of revenues, but 60% of profits. Amazing retail sale. Is a major holding of his. They spend insane amounts on AI, but have to Is up 1.44% this year.

The high end is still spending on luxury goods, while the lower-middle consumer is starting to reduce spending. This name gives her exposure to more defensive consumer staples for her main portfolio positioning.

Not one of his top 3 holdings, but likes it. It's steady, run by a good CEO who's controlled costs and spending. It will do well, all cloud companies will.

One of the underperformers in Mag 7. AWS's growth has reaccelerated though the past quarter. They maintained margins in retail. Their next-gen chips are what to focus on, so they become less reliant on NVDA. They have many levers to pull.

It rose 2.5% today on a report that their retail business has never been stronger. Their web services is doing quite well, and he doesn't agree with some that AWS isn't growing fast enough--it's growing fine.

The question was on adding to these companies. He likes them both. Amazon is a hybrid with its e-commerce side and web services. AWS controls about 30% of the world cloud services. Its valuation is reasonable with a low 30's P/E. Google has about 10% of the world cloud services and is trading at a mid 20's multiple. Had a good earnings report. There is lots of upside in both.

More growth to go on AWS, now back to 20+% growth. Of the Mag 7, still in his portfolio (along with GOOG and META). These names will monetize AI better than anybody. A buried asset that no one ever talks about is the movie production segment, which generates huge cashflow.

Not just about AWS, which proved this quarter that it's losing market share -- but who cares when the market's growing so fast? AWS is well positioned and it's the largest, adding tons of power and tons of chips. 

Stock's up today because of a deal with OpenAI. Will distribute AI to the masses in a cost-effective way with good margins. On e-commerce, by far the best distributor of products in NA and is growing in other parts of the world -- margins have significantly expanded. Trades more cheaply than WMT, COST, and ORCL. No dividend.

They were derided for not spending enough on web services. Then, Amazon reported a strong quarter with web services growing from 17.5% to 20% off a much larger base than Microsoft, and a top and bottom line beat. Today, OpenAI signed a $38 billion deal with AWS to start using Nvidia GPU'S now. Shares jumped 11.9% the past week, including 4% today.

Company expects to lay off a lot more people in future. Not necessarily a sign that the company isn't doing well, just mean they're becoming more efficient. Some companies are able to use AI efficiently at this point, and AMZN is one of them. You want to invest in those participants.

Overall it's lagged, which is a bit of a concern. Discretionary side of the market has lagged as well. Chart shows it's broken upward trend, and you want to see it break above $240 or so (on rising volume, would be a strong sign). Expects a bit more weakness, so he'd wait. Weaker consumer demand, especially in bottom 4/5 of income earners, but economy is still strong.