Requests sentiment data on Amazon, noting surprise at its position compared to Target.
Diane King Hall
Andy Swan
Amazon had a very good holiday season, building on massive daily web traffic. This drives Prime memberships and app usage.
Andy Swan
Amazon's history proves its massive capex investments (like the current $200B for AI) are justified and produce exceptional returns. This signals the AI wave is extremely real and sustainable.
Andy Swan
Short-term stock blips due to capex sentiment are a narrow view and a great long-term buying opportunity.
Notes Amazon is in a bear market from fall highs and asks if the ominous-looking data has bottomed.
Diane King Hall
Andy Swan
The data isn't ominous; it's normalization. Holiday season was very good for acquiring Prime members and new customers.
Andy Swan
Cites Amazon CEO: monetizing capacity as fast as they can build it, forecasting 17-20% annual growth for AWS until it's a $600B business.
Andy Swan
Amazon is an unbelievable company that pushes the envelope and invests in the future. If you don't own it, why are you investing?
Compares Amazon to Walmart, which outperformed it this year and moved to Nasdaq, asking how they compare.
Diane King Hall
Andy Swan
Walmart is doing a fantastic job benefiting from value-seeking consumers and price comparison traffic.
Andy Swan
Walmart's success is not a threat to Amazon; it's healthy competition. Amazon has a chokehold on most consumers.
Asks if data shows AWS, as the most profitable unit, is seeing similar growth acceleration despite being the biggest player.
Diane King Hall
Andy Swan
AWS just posted 24% growth, its fastest in 13 quarters. Amazon continues to put up enormous numbers that justify future spending.
Andy Swan
Amazon looks 6-8 quarters into the future. If you want to own a company for that horizon or more, Amazon is a pretty good bet.