Amazon.com, Inc. (AMZN)

Was seen as AI laggard, but AWS has now caught up considerably. Believes it'll still be a winner going forward. It's a lot easier to figure out how to use a new tool with your existing business than to start from scratch, and the dominant players are already there.

Has been adding to this. AWS leads in the cloud while their retail business is starting to make decent money in North America. Growth is slowing but margins are improving. Likes it long term. Valuation is appealing.

Trades ~17x PE for 2028 for 20% growth. Very reasonable PEG ratio. Concern is that spending is in overdrive but returns won't be sufficient. At forefront of AI revolution. AWS spinout could add another $35 per share.

(Note the shortish timeframe.)  AI and cloud storage are still in play as a long-term story. Volatility due to profit-taking and a shifting focus. Continues to be a good buy. With huge capex, investors want to see returns.

An efficient logistics business. Cheap at 19x PE.

They've reversed course and are now adding AI capacity. They could apply AI to the retail business like enhancing ads on Amazon.com. They will earn good returns. He's confident about Amazon.

Great at current levels, relatively cheap at 25x PE. Overhang of hyperscaler "disease" of spending too much money with no ROIC (yet). Sees light at end of tunnel. AWS grew 24-25% last quarter. Ad revenues growing 22%. Retail/logistics reorganized along regional lines, which should improve margins. Revenue and EPS growing double digits. 

More attractive than WMT. No dividend.

At a $200 billion capex, what is their ROI? Free cash flow is declining, but AWS is re-accelerating with a 24% return (21% expected). They overhired during the pandemic and just cut 16,000 jobs. AI is driving 22% of AWS's growth. Time will tell how these numbers play out, but are facing the right way.

They will have a good quarter eventually and will excite the market. They are so dominant. The job cuts will benefit numbers, and their PE is coming down.

Is not selling here, but is looking for an exit, because it underperformed all of 2025. Their cloud business could benefit from AI, but will need to keep spending on it which keeps pushing the ROI further into the future. He doesn't buy companies in a major capex cycle.

Loves it long term. Core holding. One of the best names among the hyperscalers. If your view is that AI will disrupt every single business out there, you need the type of ecosystem support that you get from AWS. Encompasses more than 50% of online retail sales.

To start 2026, they projected positive free cash flow, but already they expected negative free cash flow. We need to re-rate this name.

Owns GOOG and AMZN, but not MSFT. All are spending at least $100B this year. It's going to be a show-me story. Investors really want to see if spending will result in future earnings. He thinks it will, but there's a bit of fogginess around that. 

Plus, markets are shifting away from mega-cap tech, putting pressure on some of these names. If your time horizon is 5 years, not 1, you should do well with most of these hyperscaler names.

AWS cloud services business is phenomenal. But most people focus on its online businesses, which is significantly less profitable. Likes AWS, but likes the other businesses less. While he has no problems with it, there are better opportunities elsewhere.