Amazon.com, Inc. (AMZN)

This is tricky to make a valuation case on because they trade at such a high PE ratio.

The big knock is valuation. This company reports GAAP results and the law of big numbers has not impacted them. They are all things to all people, causing closures and bankruptcies in retail. The company will be the biggest in the world. They are best in breed.

$300 billion-dollar market cap. You could buy Amazon, hold Amazon and keep Amazon, as there is nothing to say that it won’t be a $1 trillion company someday. This has become the de facto future. The company was brilliant. Quarter after quarter after quarter, people sold off the stock because they thought the company was wasting money on building warehouses all over the world. However, it allowed the company to become the one and only option for Internet-based commerce. They are also in the Cloud business as well as having Echo, a smart speaker for answering questions and controlling an intelligent home.

This fits into the technology category, but it has basically already killed everybody. The runway for revenue, both in retail, but more importantly in Cloud services business looks really, really strong. This is a franchise that seems to have moats all around it. People have been upping the valuation to very, very high levels. It would be on his list to sell very quickly in a market downdraft, just because the room for error is so narrow, and the expectations and the profits built into the stock are so high, that when we do get a correction, people like to sell their winners. Thinks that any of these “category killer” technology stocks over the next 5 years, are going to continue to do well.

It has skyrocketed over 50% after hitting a low in the winter. Watch for upcoming volatility for an opportunity in it. She loves it at 5 to $600 and is okay at $700.

(A Top Pick Sept 29/15. Up 53.21%.) A disruptive company. They disrupted retail, the leader in Cloud Computing. They have tremendous momentum in all their businesses, and it is hard to see how someone could unseat them. He would continue to Buy this.

He just doesn’t understand this one. Trading at a P/E ratio of a few hundred. The stock has done tremendously well and are dominating online retailing. From his perspective, the stock is overvalued, but it has been overvalued for the last 10 years. If you have your eye on this, he would wait for a pullback.

(Market Call Minute.) This is going to own retail, and you have to own this on a pullback.

This has been a big spender to build out capacity. In the world of retail, this is an unstoppable juggernaut, where purchase dollars are going on-line. That growth isn’t slowing any time soon. Then you get to bolt on the second theme, which is Cloud computing, and they are the 800 lb gorilla there as well.

One of the best companies, but valuation makes it very hard for him to make sense of. You have to take a big leap of faith to bite into the multiple of 60 or 70 times earnings.

Has been concerned with this company’s high PE since it IPO’d, but they continue to execute. They’ve obviously been a complete game changer when it comes to allow consumers buy. Have been able to execute and beat profitability to make their earnings, as well as continuing to innovate.

This company is going to rule the world. Everything comes from here. It makes everything so easy for people in the city and rural areas. They have such a leg up on competitors, and is a company you must own. A company that you buy on pullbacks. When it pulls back 10% from its high, that is your opportunity to start building a position.

You are always waiting for an entry point and by the time you get one the story might be over. They keep reinvesting so much in future growth. They are starting to dominate the cloud now. People don’t appreciate the Amazon web services side. Buy a bit now.

He loves this. It could definitely go upwards to $800 or higher. There are 2 components to the business. 1.) The e-commerce side which is doing spectacularly well. 2.) Their cloud business is by far and away ahead of Microsoft (MSFT-Q). Now Alphabet (GOOGL-Q) is trying to get into the game. This is really just a case of investing in hardware and the servers, and they are driving costs down and winning over so many other companies. Has a target price of $847 in 12 months. (See Top Picks.)

If he was going to buy a growth stock it would be this one because it is a game changer. The CEO is brilliant and coming up with new ideas on how to keep growing the Amazon brand.