Amazon.com, Inc. (AMZN-Q)

Trades at 34x forward PE, with 20% growth rate starting next year. Technicals are positive. Shares are above 200-day MA, which is trending higher. AWS growth is reaccelerating again. Automation is improving margins. Ads are high margin and boosting profitability. Prime membership is its ecosystem, and very powerful.

They have their eye on it and you could buy with a very long term time horizon. However he would wait for a pullback. It has several different businesses, some with very high margins and some with low margins. It is more in the fulfillment business than product selling business by charging a fee for sellers. It shouldn't be hit by tariffs but sellers might. It is not cheap but has an excellent management team along with growth and innovation.

At the time it was cheap on PEG basis, AI play with AWS, growing into all its capital expenditures, economy was looking good. Then tariffs. Now there are headwinds, and it put out softer guidance. Still sees 19% growth, trades at 23x PE. PEG is really not bad for one of the world's best companies. Can probably get it ~$190. Still a winner, more to go.

Growth will be in the cloud computing division and advertising. E-commerce is under-penetrated in overall society, still under 20%. He views this as a logistics business, and it's the best. Prime is awesome, and they've won that game.

Over time, will eke out more profitability. One of his favourite Mag 7 stocks.

It trades at 13x EBITDA vs. 17x historically. They grew retail North American sales by 8%, international by 5%, AWS 17%. Many ways to win here. Is buying any dips.

Have to compete with shipping to the closest store. Unionization threat. E-commerce has pretty slim margins. AWS cloud computing growth isn't what it once was 5-10 years ago -- law of diminishing returns. He likes companies that take care of their staff and customers, and this isn't one of them. Dividend not great. Tariffs will bring lots of volatility to the Mag 7. More of a trade. Not for retirees.

He owns MSFT.

Very positive outlook, based on generative AI trend.

No matter what happens with tariffs, when you think about retail there are no companies more dominant than AMZN, COST and WMT. AMZN is by far at the biggest discount to peers. Also, leading cloud computing in AWS with stable and expanding margins. Best diversification of cashflow.

Whatever the retail environment looks like, they'll win. No dividend.

AWS rose 17% YOY, but missed, but more Nvidia chips would have led to a beat. Believes in this long term.

The consumer-related companies are taking it on the chin, so AMZN's retail side is taking a hit. Cloud business is great. Imports all its goods, and can more easily switch to importing from countries other than China. He's not buying much of anything now, but if he were, he'd probably pick this one.

Loves the name longer term, but sold a month back. Disappointing when you pick a stock that's the belle of the ball until the Trump wrecking ball comes along. Growing ~19%, trading at 23x. Not expensive. Analysts are assuming clarity; if we don't get it, estimates will fall. 

Be careful. Never forget that lots of people have made stunning amounts of money for a long period of time. These stocks don't owe you anything. If you're going to buy, do it incrementally.

They report Thursday. Retail is consolidating into three giants: this, Costo and Walmart. But Amazon has major tariff problems with China, though he likes what he hears about their retail business outside China.