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NASDAQ:AMZN
A great company and great chart. It's more than a Covid winner. Great fundamentals, despite a tepid response from Wall Street. AMZN is taking on a lot of retail market share. The online buying habit won't go away, because it's so easy. Prime is a super bargain including free shipping. And now they're buying MGM Studios. Their cloud business remains top dog with strong growth; it's a powerful, long-term theme. Meanwhile, travel ads are coming back and online ads are and will be on fire, bigger than Snap, Twitter and Pinterest's ad divisions combined. The ads division grew 77% YOY. He expects Prime Day on June 21-22 to be huge. Also, seasonality shows that Amazon takes off in June. Since early May, institutional buying has picked up, which is very bullish.
Don't take the FAANG stocks for granted. Amazon bought MGM Studios for $8.45 billion which is a headscratcher. True, this deal could raise Amazon's entertainment profile, but MGM doesn't make great productions these days. But this amount isn't much for Amazon, and maybe they know something he doesn't. They certainly need to boost their sports presence.
Good times will get even better over the next decade. #1 in web services, and this is profitable. Entering digital advertising, which has higher margins. Earnings will grow faster than revenues for the next 5 years. Not that expensive. Only real competitors are WMT and MSFT. No dividend. (Analysts’ price target is $4259.33)
AMZN vs. GOOG Price target for GOOG of $2700, so a lift of about 17% from today. Whereas AMZN gives you a 25% lift from today to its price target of $4200. He'd recommend that you split your investment of new money 50/50 between the two. GOOG is a core holding, and the only time he trims is when the position gets beyond 5%.