In today’s post, I will be covering Amazon($AMZN). I am sure you all have heard of the company due to do its reign in e-commerce. However, that is just a drop in the bin. I believe that cloud computing, AWS, is the main driver of its net income. I will not get into specifics but they are powering big-name players like; Netflix, Twitch, Facebook, LinkedIn, Twitter, etc. Along with their e-commerce and cloud computing, they offer one of the best streaming services that will soon be broadcasting global events such as NFL, Premier League, and more. Additionally, they own a large market share in gaming and audiobooks through Twitch and Audible. Did I forget to mention they own Whole Foods, an outlet for retail distribution?
They are revolutionizing everything they do while providing low prices to consumers, one of the main reasons I think they will not be broken up. However, today’s headline, “Biden Weighs New Executive Order Restraining Big Business” (WSJ), brings some skepticism. Regulation in various facets is their biggest headwind. Nonetheless, even if they are broken up, you would still want to own the previously mentioned businesses in isolation.
As seen in the image, the company has been trading in a range from 2900-3500 (Red/Blue horizontals) for about a year now, while the rest of Mega-Cap Tech (Microsoft, Apple, Google, Facebook) has steadily made all near all-time highs. I think it is on the verge of a technical breakout (breaking out of the previous trading range) as they continue firing on all cylinders and growing the business vertically and horizontally.
In the world of finance, I often do not like to make decisions in isolation. That being said the conjugation of all previous factors provides a decent investment thesis. It is currently around $1. 74T. I think it will, sooner than later, cross the $2 trillion market cap, (+12%) that competitors Microsoft and Apple smashed. Could you imagine a world without Amazon? It wouldn’t be better in my opinion and I do not see that changing in the near future. In the long run, the companies growth will slow and the company will transition away from reinvestment to shareholder distribution (dividend).
Con: Regulation + Tech Drawdown + Treasury Rate Increases
Pro: Businesses + Technical + Smart Money
They are revolutionizing everything they do while providing low prices to consumers, one of the main reasons I think they will not be broken up. However, today’s headline, “Biden Weighs New Executive Order Restraining Big Business” (WSJ), brings some skepticism. Regulation in various facets is their biggest headwind. Nonetheless, even if they are broken up, you would still want to own the previously mentioned businesses in isolation.
As seen in the image, the company has been trading in a range from 2900-3500 (Red/Blue horizontals) for about a year now, while the rest of Mega-Cap Tech (Microsoft, Apple, Google, Facebook) has steadily made all near all-time highs. I think it is on the verge of a technical breakout (breaking out of the previous trading range) as they continue firing on all cylinders and growing the business vertically and horizontally.
In the world of finance, I often do not like to make decisions in isolation. That being said the conjugation of all previous factors provides a decent investment thesis. It is currently around $1. 74T. I think it will, sooner than later, cross the $2 trillion market cap, (+12%) that competitors Microsoft and Apple smashed. Could you imagine a world without Amazon? It wouldn’t be better in my opinion and I do not see that changing in the near future. In the long run, the companies growth will slow and the company will transition away from reinvestment to shareholder distribution (dividend).
Con: Regulation + Tech Drawdown + Treasury Rate Increases
Pro: Businesses + Technical + Smart Money