Amazon.com, Inc. (AMZN)

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. 

Finally caught fire, and for good reason. Monetizing their efforts, which is flowing to the bottom line. EPS starting to expand more rapidly. Multiple's fallen from stratospheric levels down to mid-40s; should fall rapidly from here, as EPS likely to grow at 20+% over the next few years. 

On e-commerce, has grown into fulfillment centre development. Mammoth AI opportunity. Reports on Thursday -- watch the AWS cloud number. Last week, MSFT was a bit shy on Azure. No dividend.

It report Thursday. He expects terrific numbers, but they may not need to be that terrific to justify its recent rally. Maybe wait till after the quarter.

Owns shares in the company. Excellent company with strong margins and operational performance. Ability to generate cash flow unparalleled. Amazon Web Services very high margins. Current valuation is less than companies like Costco. Profits starting to appear in places like Europe.  

Still a core holding. AWS is the biggest player in data storage, and this will continue. Advertising has better margins  than retail, yet they continue to take market share in retail. Entering higher-margin businesses, with track record of winning every time they do.

Investing so heavily is holding up the PE. If they stopped that, growth would slow down and earnings would shoot up. That's the price of growth.

Trades at a reasonable valuation. Such a broad company. Their ad business continues to grow and they will remain competitive in data centres (they and Google have the best infrastructure in data centres). Prefers Amazon for its valuation and diversification.

In 2022, investors lost their minds when Mag 7 companies were spending huge to solidify their moats. AMZN continues to fine-tune their logistics network, Prime and ad (both growing well), while the data centre business is a no-brainer. Well-diversified. This CEO is taking Amazon to the next level.