As the AI megatrend continues to accelerate, the Magnificent 8 (plus 2) continues to widen its lead (some more than others) and will thereby continue to benefit. Just this past week, for example, OpenAI unveiled "Sora 2," an advanced video generation model and a creation-first social feed (with API and Android integration planned). Also, Anthropic's "Claude Sonnet 4.5" (their most intelligent model yet) is now generally available on Google Vertex AI (enabling developers to build sophisticated applications). This all spells "more growth" and more need for chips, data centers and energy-efficient solutions. In a nutshell, more upside for AI ahead.
Amazon: Despite Headwinds, Big Opportunities Ahead
Most people recognize Amazon as the global leader in in e-commerce, but it’s also a huge cloud company with massive advertising revenue growth. Further, Amazon is spending heavily on Artificial Intelligence (“AI”) and other innovation, while simultaneously strengthening profitability under CEO Andy Jassy. And despite big risks (such as tariffs, massive scale—which makes growth challenging, and competition), the shares are attractively valued (especially considering its strategic focus on large-TAM megatrends). I review the details in this report and then conclude with my opinion on investing.
Amazon: Ranking "The Magnificent 7" (Midyear Update)
As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Nvidia: AI Meet Digital Revolution (5 Stocks Worth Considering)
When two of the economy’s biggest mega trends combine, you get Nvidia (+59% ytd) and offshoots like Super Micro Computer (+202% ytd). And if you’re wondering if its “too late” to invest in these two mega trends (i.e. Artificial Intelligence and/or the Digital Revolution) the answer is a resounding, no way! We’re still in the early innings and here are 5 stock ideas that could potentially ride these waves dramatically higher in the decade ahead (volatility haters need not read on).
Amazon: Ranking “The Magnificent 7” for 2024
2023 was largely a tale of two markets. The “S&P 493” (roughly two-thirds of the index, by market cap) was up 20.3% (on average), while the seven largest mega-cap stocks (i.e. the “Magnificent 7”) were up ~100%, on average (see table below). In this report, we rank each of the Magnificent 7 stocks for 2024, with a special focus on Amazon (including an update on its business, its four big growth opportunities, valuation and risks). We conclude with our stern opinion on investing in Amazon (and the Magnificent 7) in 2024, especially as compared to non-mega-cap growth stock opportunities.
Amazon: 100 Top Growth Stocks, Ranked
2022 was an ugly year for growth stocks. And it’s going to get worse for many of them. In this report, we rank 100 top growth stocks based on the financial metrics we consider most important in the current market environment. We have a special focus on Amazon, comparing it to peers on these same financial metrics, but also diving into its specific business fundamentals, including competitive advantages, risks and valuation. We conclude with our strong opinion on Amazon and investing in select growth stocks in the current market environment.
This Mega-Cap Growth Stock—On Sale and Attractive
It’s been a rough year for growth stocks as rising rates are slowing the economy and analysts revise down their previously over-extrapolated long-term high-growth targets that were based on the relatively short-lived pandemic bump. But don’t let the negative short-term sentiment fool you into believing certain long-term secular trends have ended; they have not, and attractive businesses are now trading at increasingly attractive prices. In this report, we review one mega-cap high-growth stock in particular (including the financial metrics that mislead some investors) and then conclude with our strong opinion on investing.