Amazon.com, Inc. (AMZN)

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.

The big knock is valuation. This company reports GAAP results and the law of big numbers has not impacted them. They are all things to all people, causing closures and bankruptcies in retail. The company will be the biggest in the world. They are best in breed.

$300 billion-dollar market cap. You could buy Amazon, hold Amazon and keep Amazon, as there is nothing to say that it won’t be a $1 trillion company someday. This has become the de facto future. The company was brilliant. Quarter after quarter after quarter, people sold off the stock because they thought the company was wasting money on building warehouses all over the world. However, it allowed the company to become the one and only option for Internet-based commerce. They are also in the Cloud business as well as having Echo, a smart speaker for answering questions and controlling an intelligent home.

This fits into the technology category, but it has basically already killed everybody. The runway for revenue, both in retail, but more importantly in Cloud services business looks really, really strong. This is a franchise that seems to have moats all around it. People have been upping the valuation to very, very high levels. It would be on his list to sell very quickly in a market downdraft, just because the room for error is so narrow, and the expectations and the profits built into the stock are so high, that when we do get a correction, people like to sell their winners. Thinks that any of these “category killer” technology stocks over the next 5 years, are going to continue to do well.

It has skyrocketed over 50% after hitting a low in the winter. Watch for upcoming volatility for an opportunity in it. She loves it at 5 to $600 and is okay at $700.

(A Top Pick Sept 29/15. Up 53.21%.) A disruptive company. They disrupted retail, the leader in Cloud Computing. They have tremendous momentum in all their businesses, and it is hard to see how someone could unseat them. He would continue to Buy this.

He just doesn’t understand this one. Trading at a P/E ratio of a few hundred. The stock has done tremendously well and are dominating online retailing. From his perspective, the stock is overvalued, but it has been overvalued for the last 10 years. If you have your eye on this, he would wait for a pullback.

(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.