Amazon.com, Inc. (AMZN)

They are reportedly in talks to buy a Dubai based online retailer SOUQ.COM for $1 billion. That would be peanuts for them. This is an amazing company that has grown from zero to revenues of over $100 billion. He has no idea how to value this company, and therefore he can’t buy it. They are generating all of their growth through their own free cash flow generation. An unbelievable operation, growing in the Cloud.

His long-term thesis on this is very bullish. They are dominant in Cloud and in retail. In the very short term, it has been used as a source of funds for people who under-owned financials. Financials is the most under owned sector in the market. He would have no problem holding this.

Trump is not what to be nervous about with this one. The disruption would be how in the US you don’t pay sales tax on something bought out of state. They are an incredible company that is in all kinds of areas. But it trades at nose bleed levels and you might not be comfortable owning it at these levels.

No Dividend. Cloud computing is a strong grower. The Alexa device will allow you to yell at it that you need something and it will be delivered in one day. The web services are a huge growth engine. (Analysts’ target: $940.37)

He would have a hard time advocating buying or owning this, based on its valuation and its ability to generate cash. They are doing a phenomenal job of owning a lot of businesses, but are doing it by spending a lot of money and not generating a lot for shareholders. Valuations are pretty nosebleed territory.

A high growth, momentum stock. Fund flows were coming out of large cap technology, which had done very well, into the other areas of the economy. The company grows their top line, but not a lot falls to the bottom line, which is a difficulty she has in owning this for her clients. For an entry point, perhaps look at their 20-day moving average, and when it gets to those levels, it may be one you want to start looking at.

Trump thinks they have dominance. It is going to be tough to keep a growth engine like this down. It is bouncing off the trend line. He started buying last week. If it breaks $700 for two to three weeks he would get out again. No Dividend. (Analysts’ Target: $940.46).

The upside for the Internet delivery model, the Cloud, all the back model that is being offered through this company is only going to get better. It is a very pricey stock. To get into it you would need a selloff, but if you are looking for more upside, he would look at Ali Baba (BABA-N). He thinks the space is going to become increasingly interesting as we move into the next phase of the economy, particularly under Trump. This is one to watch.

Very volatile and is most definitely a risky stock. Those who have been in this for the long-term have made tremendous returns, but you are buying a stock that has not had much profit and a lot of promise, for an exceedingly long time. If you are to time the market entry on this stock successfully, you should enjoy the volatility. A very difficult stock to figure out as to when to buy and what the price might be. It is probably best bought for the long haul.

(A Top Pick Jan 26/16. Up 31.01%.) This would have been a little bit higher if they hadn’t disappointed on earnings. Investors don’t know what they are going to get on an earnings call with this company. They are either going to flash you a profit to get you all excited, or will plow all that money back into the business.

He has no clue what it will do in 6 months because it is such a volatile stock. Over the long term you will do super well with this stock. It is either reasonable or really high priced, depending on your metrics. The Canadian dollar will stabilize at a rate just about here.

The down side is about $706, another 10%. He has taken an initial position. We have this long term trend line that is still going up. You either get out right now, or ride it out. See what happens Monday. His sell trigger has come up and so he will watch it for a couple of days to make sure.

GOOGL-Q vs. AMZN-Q. He does not think AMZN-Q will pay a dividend. They are both equally interesting companies to own. AMZN-Q is going to reinvent retail. It is a unique story but you are paying a high multiple. GOOGL-Q is very interesting because if you are advertizing it is either GOOGL-Q or FB-Q and the former has a lead over the latter. They will continue to grow. You want to own both if you can find the right time. You have to expect volatility in both of them.

Feels the price is a little rich. It is hard to argue with what they have built, but the valuation metrics on the surface don’t seem to make a lot of sense. This is really a landgrab, where people assume that as more and more people sign up to Amazon Prime, and more and more people use the site, their profitability is going to soar. He is still waiting for that to happen. Wait for a pullback.

This is tricky to make a valuation case on because they trade at such a high PE ratio.