Amazon.com, Inc. (AMZN)

(Market Call Minute.) This is going to own retail, and you have to own this on a pullback.

This has been a big spender to build out capacity. In the world of retail, this is an unstoppable juggernaut, where purchase dollars are going on-line. That growth isn’t slowing any time soon. Then you get to bolt on the second theme, which is Cloud computing, and they are the 800 lb gorilla there as well.

One of the best companies, but valuation makes it very hard for him to make sense of. You have to take a big leap of faith to bite into the multiple of 60 or 70 times earnings.

Has been concerned with this company’s high PE since it IPO’d, but they continue to execute. They’ve obviously been a complete game changer when it comes to allow consumers buy. Have been able to execute and beat profitability to make their earnings, as well as continuing to innovate.

This company is going to rule the world. Everything comes from here. It makes everything so easy for people in the city and rural areas. They have such a leg up on competitors, and is a company you must own. A company that you buy on pullbacks. When it pulls back 10% from its high, that is your opportunity to start building a position.

You are always waiting for an entry point and by the time you get one the story might be over. They keep reinvesting so much in future growth. They are starting to dominate the cloud now. People don’t appreciate the Amazon web services side. Buy a bit now.

He loves this. It could definitely go upwards to $800 or higher. There are 2 components to the business. 1.) The e-commerce side which is doing spectacularly well. 2.) Their cloud business is by far and away ahead of Microsoft (MSFT-Q). Now Alphabet (GOOGL-Q) is trying to get into the game. This is really just a case of investing in hardware and the servers, and they are driving costs down and winning over so many other companies. Has a target price of $847 in 12 months. (See Top Picks.)

If he was going to buy a growth stock it would be this one because it is a game changer. The CEO is brilliant and coming up with new ideas on how to keep growing the Amazon brand.

Difficult company to understand, because they tend not to be traditional. They don’t try to satisfy the street by returning capital to shareholders through dividends or buybacks. They don’t try to satisfy the street by having a progression of earnings over time.

Amazon (AMZN-Q) or Google (GOOGL-Q)? A tough one. It is the battle of the Titans. He would own both. He likes to buy companies that are disruptors and that change industries, and both of these have clearly done that. This company is crushing a whole bunch of retailers. You could also buy the ETF (PNQI-Q) which is an Internet-based ETF giving you a basket, or FDN-N, the retail ETF.

The company is phenomenal. With drones, etc., they are on the leading edge of distribution. From a logistical distribution standpoint you won’t find anything better. Part of the problem is that it is run like a private company. The most recent quarter was a big earnings miss, hence the pullback. It has been subject to moderate negative earnings revisions, which is never a good thing. On a long-term basis, it is still a very attractive place to be, but you can’t count on it on a quarter to quarter basis. Doesn’t make the cut for him because it is too volatile.

You have to believe in the greater concept that Amazon is trying to achieve. They can make money if they want to, but is probably positioned not to give you a lot of earnings or dividends for a long time. A lot of the money goes back into developing and growing the business. The Cloud business is doing incredibly well and the retail business continues to grow taking market share away from the big box players. The company has changed the way people think about retail and will continue to do so. Expects they will continue to grab market share away from a lot of stores. When you see big Down moves in the stock, that is the time to try and buy it.

This continues to be a category killer. They account for 20% of all US online sales. Reporting on Thursday, so it is going to be interesting to see what happens. We are currently in the middle of an 18% drop. Had a strong year last year being up 140%. They are doing everything right.

It does not fit into any box. It is tough to analyze. 50% of online shipments over Christmas came from this company. It is a really good model. If they cut back on reinvesting cash flow into the business it would create earnings.

A great company, but you have to be able to stomach some volatility. They are really taking over the retail space. When looking at some of the retail stores, you can see this company is having a major impact on them. As the consumer matures online, they are more likely to go and buy other things then what they would have before. This has a high valuation and is incredibly expensive, and he would probably buy it on a pullback.