AMZN — All updates

Hi, I'm Jimmy. In this video, we're looking at Amazon, ticker symbol AMZN. Now, when I was doing the research for this video, I actually came across an interesting fact. So, first, on the Investors Grow website, you can see here that when we look at the star system, these stars are pretty good.

Three stars is the best, and right now it looks fairly good.

Then, in late June, the index providers did their annual rebalance. They moved those chip stocks out of the value index and into the growth index and moved Amazon, Apple, and Microsoft the other way into value.

And the timing was, by complete accident, absolutely perfect. The chips got sold right at the top of their run, just before they rolled over, and the value index picked up the big tech names right as they were touching their lows.

Moving on to Amazon, start of the week at 263. Shares went up and down, roughly flat technically, kind of in a decent spot for Amazon. Shares closed at 258. That was down about 1.6%.

The company is piling into Austin, Texas like a lot of companies are to build a new robotics facility, essentially creating 300 to 500 manufacturing and engineering jobs.

Stocks like Amazon. Um let me just erase that from a prior drawing. I have been looking to buy this, but I haven't bought it yet because we have a declining 5-day moving average and we see we're still heading lower from there.

This is the anchor from the Leo low. I don't think it's really important for Amazon.

Massive tech companies like Amazon, Google, McDougall, Meta are borrowing heavily to build data centers and finance artificial intelligence infrastructure.

What about my lovely amazing on Amazon stock, right? Look at free cash flow that was piling up. Their free cash flow was exploding at Amazon, right? And now it's gone into the negatives and it's going to get a lot worse before it gets better.

That's the thing you got to understand. it, you know, it' be one thing if it's like, okay, that's it. You know, we're heading back up from here. It's not, and it's not anytime soon.

Like, it's going to get a lot worse for at least a year or two, but it's also debatable if it's going to be three or four years of the cash flow getting worse and worse and worse.

Now, you get to see what's going on here. Right? This is free cash flow per share. Oh my gosh, look what has happened at the great old amazing zone.

and I believe you're pretty heavily invested in Mata Libre, Amazon, but but also Reddit and some other names, too.

But how about we jump to our other Mag 7 name in the portfolio. So Amazon has been a holding since February of this year when we bought it in the 190 range per share and it has corrected over the last few weeks.

So returns are a little lower than they were when Amazon was trading at as high as $270 per share.

Amazon, AMZN. This one I absolutely love between the e-commerce side, the AWS side, which is accelerating rapidly right now in regards to growth rates, and then they got their ads business, and they got a bunch of other businesses, but those three are the cores, right?

And so this one's definitely an honorable mention.

Um I think you know both Google and Amazon had similar results where cloud grew just ex almost wouldn't say exponentially but accelerated in terms of growth um to I think growth rates especially for Amazon that we haven't seen in many years.

Um, if we look at these and I would have to choose just one company that still exists at that point, I think it would be either Google or the next one that I pull up now and that would be Amazon.

Across the five biggest AI spenders, including Amazon, Microsoft, Alphabet, Meta, and Oracle, 20026 capex, guidance now totals more than $725 billion.

And Amazon is leading the pack at $220 billion. It's a number that their CEO Andy Jasse raised from their original 200 billion guidance that was issued during their Q2 earnings call last week. Andy Jasse blamed higher memory costs.

You go look at Microsoft and Meta and Amazon. They're importing hundreds of billions of dollars of semiconductor equipment and telecom equipment and things of that nature.

We both think that Nvidia is cheap, Amazon is cheap.

So if you think about it, between Meta, Alphabet, Microsoft, and Amazon, we're looking at combined AI related capital expenditures approaching 500 billion in 2026 alone. Meta at 130 to 145 billion, Alphabet at 195 to 205 billion, and Microsoft and Amazon have not yet updated their guidance this week.