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NASDAQ:AMZN

Amazon.com, Inc. (AMZN)

243.01
-1.38 (0.56%)
as of Jun 18, 2026, 11:59:51 pm Market Open.
610 watching
0
TOP PICK
They invested a year in one-day delivery and proved it at Christmas. The stock has broken out and will lead in 2020. AWS will grow 30-35% a year. A must-own. (Analysts’ price target is $2411.52)
BUY

It's really a loss-leader. Profits lie in the server side (the cloud) with only a few players in this space like MSFT. That said, this will continue to grow. Valuation is very high, but this will remain a growth leader with segments like Amazon Prime doing well.

TOP PICK
It's been lagging the last 18 months while the other FANGs were partying. The $3-billion to build their AWS cloud business and overnight shipping system have paid off. Revenue growth of 21% is amazing for a company this size. Outperformance will continue. (Analysts’ price target is $2411.52)
BUY
You could've bought this for most of the last 18 months, based on valuation, such as end-December 2018. Problem was margin compression as competitors gave away free shipping. So, Amazon started to push one-day shipping, but it temporarily compressed margins with higher costs. Now, there's operational leverage and wider margins. Also, they're shifting to providing payments and logistics to other merchants and this offers wide margins. AWS are also profitable. He'd stick with it. It's an excellent business.
BUY ON WEAKNESS
The story is very bullish, but hasn't made new highs. This trade is crowded, so wait to buy at $1,800.
PARTIAL SELL
It's consolidating now after a good, long rise. It is currently toppy (below $2,000). It has trouble breaking past $2,000. It's okay to take some profits.
WAIT

They have gone sideways while FB-Q and GOOGL-Q have gone up. They have some catch-up to do. They don't appear to be cheap but the cash flow is very strong. He would like to see them get back to highs of $2100 and then keep going and that would be a time to buy it.

TOP PICK
A perennial 20% revenue grower, dominant in cloud and e-retailer with a great holiday season. They're pushing one-day shipping that'll pressure competitors. (Analysts’ price target is $2187.88)
TOP PICK

Not only an e-commerce company, but one that sells stuff in every conceivable sector from healthcare to the cloud. Massive potential. It's lagged the other FANG's, but this year it will catch up. As for FedEx, turns out they need FedEx until Amazon fully builds its one-day delivery network. (Analysts’ price target is $2181.39)

COMMENT
As a short-term trade The juggernaut that will continue to bolt. Its challenge is that its cloud service can't grow forever; it will slow. He doesn't trade short-term, but Christmas sales did do well. So, was that good news then baked into the stock? If so, will the stock drop at Amazon's next earnings report? Or is it not popped in enough? Expect volatility around earnings time in early February.
HOLD
He recommended this a year ago and bought around $1400. It is the poster child of a bullish market. It has a nice cup and saucer formation that is interesting. He sees further upside and a potential for a real run if it can break above historic highs.
TOP PICK
One-day delivery will take them time to build, and the stock may tread water along with the wider market for the next 6 months. But after that, things look good. A great business. In a few years there'll be a free cash flow ramp after they build this large e-commerce infrastructure with next-day delivery. They can also grow their ad and cloud businesses further. Sees 37% EPS growth at 20x earnings. (Analysts’ price target is $2178.24)
DON'T BUY
They are very independent and don't share all the information that the market wants to see. He does not see that as being bad in this case and this helps them avoid the short term impulses of the analysts. It is closing in a trillion dollar market cap and still growing above average. Earnings are not growing as fast, but that is the strategy -- be a market disrupter. He would not invest in this due to the lack of transparency.
HOLD
He bought it on Christmas Eve last year when it hit its low for that period. He recommends still continuing to hold it. It is not hitting new highs because they are ramping up expenses to work on their one-day-delivery. It is believed when they get there they will make up the decline.
COMMENT

Microsoft had a good earnings quarterly report. What he doesn't like is that it trades 25 times earnings, when earnings are expected to grow at 10%. He thinks there are better growth orientated stocks out there like Amazon, Google or Apple trading at better valuations.

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