Amazon.com, Inc. (AMZN)

Acting pretty well today. Indicators are trying to turn up, meaning some of the selling is maxed out and people are stepping in. Support around $175, then heavy support around $155. After that, support level is ~$110.

Benefits from people moving to the cloud and AI. Makes so much $$ doing that already, and the world isn't going to be doing any less in those areas. AMZN will continue to be a dominant player in those areas. No dividend.

Frustrating, as stock's down mainly due to macro, not to the company itself. Beat on recent quarter. AWS is really growing from AI tailwinds. People may be concerned about level of AI spend at 35% of capex. Growing at 20% a year, trading at 20x 2027 PE. 

This is where you'd want to buy if there wasn't all this macro noise. Things could get worse if the administration doesn't pull back. Good, long-term name at these levels. Buy here, forget about it for 10 years.

The PE is now below Walmart's. They have so much data and are developing agentic AI, the next wave in tech. He targets $255.

AWS and Prime are doing well as well as its ad business.

The caller was hoping for a 10% per year return and Amazon is growing earnings faster than 10% and revenue at least 10%. Tech stocks across the board have sold off and the P/E is now 31. Its valuation today is the same as Walmart which is over-priced. A couple of years ago it decide to relax its constant investment.

Paying 30x PE for 14-15% growth. You're buying this for the cloud, which is growing very quickly. Slightly cheaper than AAPL today, so he'd pick this one.

Likes the chart. 2024 was bananas, and the stock went parabolic and probably well over 15% above its 200-day MA. So it had to fall. Possibly testing the trendline. He needs to see evidence of a bounce, but if it did he'd be all over it. Great company.

Backlashing on AMZN may not be the way to do it if you're a proud Canadian, as a lot of hard-working Canadians have actually built their businesses via AMZM. We're small potatoes in the grand scheme of things.

He's looking for the chance to buy, but it's not cheap enough. He'd probably take a stab if it dropped another 10-15%, with a very long-term view.

The ones that are nice to King Trump. He'd hope that TSLA and AAPL would escape additional tariffs on China. 

Except for TSLA, the other Mag 6 have come down to very reasonable valuations. For example, AMZN's trading at a discount to WMT, which makes no sense. GOOG is trading at 19x earnings. Thinks AAPL growth will be double digit. This is your chance to buy quality companies at reasonable valuations. See his Top Picks.

Has benefitted from gen AI growth. Dominant, they just surpassed Walmart as the biggest global retailer. They continue to invest in faster delivery, and are increasing Prime memberships. He sees strong growth in profits, taking market share in the cloud. He earns 10% net margins, which he expects to double in 6-7 years. Shares have pulled back 15% recently.

Meta's gross margins are 80% vs. Amazon's 50%. Meta trades at 25x vs. Amazon 37x. So, wouldn't money be rotating out of Amazon into Meta? It hasn't.

Will go higher. They beat top and bottom lines. EPS was ahead. He predicts Amazon along with one or two others, to the globe's biggest AI player. AWS is the biggest cloud, and will boast the most tools and users for AI solutions; they will monetize early and better than all others. They have the 3rd-largest ad business in the world, growing this past quarter. They benefit in AI long-term, with an installed user base already (don't need to attract people).

Amazon is down 4% today. Who cares? It will recover and march higher. Amazon has trades at a high PE for a long time and is now lower than it's ever been.

Very high trading multiple makes it hard to justify investment. If the revenues do not grow in line with current valuation - will be rude awakening for investors (share price will fall sharply). If share price was to fall to ~20x earnings, would be a good time to buy. Business is very strong - just a matter of valuation.