Amazon's e-commerce threat has diminished; preferred for capital allocation now; expected to benefit from AI productivity over 10 years.

What It means for us who We own companies like Alphabet and Amazon in Our investment portfolio?

I have I just spoke, I think We had a discussion years in the community before Two days, where he wondered People are asking whether it is from It is necessary to grant companies such Amazon and Google Microsoft multipliers It's different now that These companies became Deeper in debt Ever, but Basically, isn't that right?

Amazon was the first company Among the companies The pioneering investor Huge capital and became More capitalist intensity When AWS services were launched. At that time, Everyone says, "You have A great business model, no You need to spend capital Big money, you have margins "Excellent profit."

But now, So you are spending capital Big on a project that may He ends up With weak profit margins, And you are forced to invest Huge capital. this The project is the crown jewel Amazon, with profit margins It reaches up to 35%, which is The project that he desires investors in Investing in it when They are thinking about Amazon.

For example, if We have now compared Amazon And Google, right? I think it was a year ago Only one, when I didn't The idea of engine failure Research over the years three to five The next one is a rumor, we were We believe Alphabet will be In a stronger position than Amazon , For example.

Now, if we look at The two companies, we find that Alphabet has options Wide due to diversity Its activities, therefore it is not possible

But it seems that Amazon now owns, At least from one point of view Theoretically, a better source of income. It is the trade department Electronic. And the advertisement, for example Example.

but My point of view is that Amazon, as a marketplace, perhaps Be big enough To say: "Well, I have We stopped working, and we won't We are integrated into Muse And other agents."

I believe there is a chance, At least, so that you can Amazon to maintain Her advertising work, Because most people will remain They head towards it because It has many advantages Many.

So the matter is not Limited to services Not just logistics, but It also includes quantity Products you can Buy it from Amazon. And you can be absolutely sure Because it offers the best Prices.

So, if you I shop and I think The product I'm looking for It may be present on Amazon, I will choose Amazon, definitely.

Therefore, I think you should To be the size of Amazon To benefit, and perhaps even To be able to maintain Your advertising work. Otherwise, it will be in Extremely difficult in the field E-commerce.

But you also have work e-commerce Successful, in addition To the infrastructure For artificial intelligence. You have your own chips, You have the AWS cloud, and you have Many works The other ongoing.

but I think if you asked me today Taking into account Consideration of assessments, Regarding the company I will allocate She has more capital now So I will choose Amazon, because The research work in it did not It is as questionable as it was Previously, I don't see The same threat to businesses e-commerce For Amazon, although things Changes are happening there too.

Yes. Yes. The exciting thing Interesting in Amazon is It combined approaches Berkshire and Alphabet, Isn't that so? Where it works In the field of transportation Trucking and Services Logistics and warehousing, Isn't that so?

This is it The essence of investments Amazon over the decade the past.

And at the end Ultimately, you cannot Amazon control How people search for Products and purchasing them. Of course, Amazon wants In controlling relationships Customers as much as possible and control their data Completely.

But if There were one hundred million customers They shop through the Muse platform, Amazon will have to Allow Muse By merging with it.

but What distinguishes this platform from Another thing is that when buying Products via The internet must be accessible Really to your doorstep. Isn't that so? There is a mechanism In reality, for example if I ordered a shirt or socks New from Amazon, There will be a system Integrated, regardless of artificial intelligence, The product will be delivered to me.

As a consumer. So, I think That this represents an advantage tremendous to them,

Whatever The method, it must arrive Products to door Your home, and no one in a position He is allowed to do so or It is better to invest in it From Amazon.

For example, if I asked an agent like Moose Buying a specific product, let's say socks, in most Sometimes it will be requested via Amazon due to availability Best services Logistics and best Prices.

Therefore, regarding For the agent, as is the case For you, from It makes sense to buy the product From Amazon. This in turn It will increase sales volume Therefore, it will raise Amazon commission Sales on services Logistics.

So, I think If you have these Market power The enormous size, we may not know Even how things will end Exactly, but if not Part of the work succeeds In the same way, I see that The other parts will compensate that.

For example, if Commission rate decreased Ads or no longer Of equal importance, They can increase the percentage Service commission Logistics. And then, That would be fair For sellers because of the value Logistics It will rise.

It's not like If only they would try Price reductions, but value Logistics It will be much bigger in That world compared In its current state.

Again, this is a point Important for the markets, but The best companies in The whole world is moving From the "See's Candy" model to capital-intensive model At the same time. And it is possible To say that Amazon was Indeed, a thick head the money.

as Learn, if you look at Amazon had 18 billion dollars in flow Free criticism a year ago, It is now -7.6 billion dollar.

But I know that Google Amazon is investing More in this area.

but on Amazon This is exciting. Surprisingly. Because they, as You know, they might spend Less because of their relationship with OpenAI, but they have Cloud-based businesses. as They still They invest in chips Electronic.

Therefore, from Surprisingly, they They make huge profits now.

or Amazon, for example

Also, I don't know how You can see that if you compare All advertising companies, Like Google and Amazon, Airbnb and Uber,

But if you enter Amazon, you want shopping. So, you Browse the products, and That moment you see You advertise it and then buy it. Immediately because you want to buy Something now. I think that These ads are difficult Defend it.

Simply put, it is: if you Own the best companies Which she believes You will benefit over 10 Years of gains Productivity and benefits Economics of Intelligence Artificial, it will be It's all right in the end.

Therefore, For this reason, when not I know how it will change Things, if I own Shares in Amazon or Google, I'm confident Exactly from them You will both benefit from that. For a period of ten years.

I don't know Whether it will happen economic bubble during Two or three years, but I I'll be fine after ten Years.

Despite The significant growth that Computing services achieved it Google Cloud Amazon and Microsoft In the past two years, However, this is not due to Customer change For their cloud services. but rather It comes down to joining More customers, then Google users move Sweet for a long time Google Cloud.

It is true that Amazon had an advantage Leadership, but you don't see it A change in customers.

These are gains included in Corporate income statements investor like Microsoft and Amazon. investor like Microsoft and Amazon.

There are also The fact that Amazon Alphabet and Microsoft collectively invests in Companies like SpaceX Anthropic and Open A any. This is evident in the image Unrealized gains.

And that some models Chinese, or perhaps all A leading company like Amazon And I intend, you will own AI agents Two specific basic principles.

It's like a system Amazon Logistics. It's similar to all of those Services that make The product is good, which You don't see it or you don't feel it As a customer, it's part of The product, but in That's the reality.

When You can submit it. I think this is A huge gain, and a company Airbnb, for example, She is capable of that. As well as Amazon, and Millie, and other companies Similarity.