WEBVTT - Amazon vs. Big Tech: Why the Stock Isn't Skyrocketing

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<v Speaker 2>This episode is brought to you by P and C Bank,

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<v Speaker 3>Let's talk about Amazon. Yeah, why is Amazon consistently making

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<v Speaker 3>big move but the stock doesn't reflect it? Like, the

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<v Speaker 3>stock is never really going skyrocketed. It's not going up.

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<v Speaker 3>It's not keeping track with Apple or Microsoft? Like why

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<v Speaker 3>has Amazon underperformed relative to the other big tech companies?

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<v Speaker 4>Well, my question would be have they underperformed or are

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<v Speaker 4>they just in the range where they should be for

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<v Speaker 4>a normal stock that is a Fortune five company that

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<v Speaker 4>is not overinflated. I think we all can agree. As

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<v Speaker 4>great as Nvideo is to go up eleven x in

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<v Speaker 4>four years. It's a feat that many companies won't do again.

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<v Speaker 4>So I think it's performed incredibly well. Like especially from

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<v Speaker 4>where it was. It's one of the top picks, top

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<v Speaker 4>retirement pits in stock Club. I think that people want

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<v Speaker 4>extraordinary gains, but then when we have extraordinary drawdown, they

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<v Speaker 4>don't want that part of it. Amazon's Tim duncan give

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<v Speaker 4>me twenty two and twelve and four blocks in the

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<v Speaker 4>finals and may not. I'd be the spectacular fifty point

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<v Speaker 4>nine that maybe a Carmelo can put up. But I

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<v Speaker 4>like when a company can consistently print games or and

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<v Speaker 4>then have little draw down. I think we all can

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<v Speaker 4>be very clear. In the retail space, they run the

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<v Speaker 4>retail space, getting more exposure in India, which is the market.

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<v Speaker 4>I think that it's going to be most important in

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<v Speaker 4>the next two decades. I think they've done incredibly well.

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<v Speaker 4>Great question, but sometimes a safe stock doesn't look exciting

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<v Speaker 4>when other things are going parabolic. But when those stocks

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<v Speaker 4>or meme coins go parabolic, do they last for long?

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<v Speaker 2>Amazon is my favorite company, and I think for all

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<v Speaker 2>the points you said, and then I'll add a few

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<v Speaker 2>additional ones. Unlike in the video, when you hear something

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<v Speaker 2>about black Bell. You can see momentum move in a

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<v Speaker 2>positive direction. When Amazon makes it an announcement, it necessarily

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<v Speaker 2>doesn't move with the announcement. The announcement sometimes and the

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<v Speaker 2>gains are probably baked in and so you'll see slow movement.

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<v Speaker 2>But if you look at it over this past five years,

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<v Speaker 2>it's going up eighty seven percent, so that's nearly one

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<v Speaker 2>hundred percent returned since the pandemic. This year it's up

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<v Speaker 2>twenty percent. So these are like, really there's a whole

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<v Speaker 2>run in the year.

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<v Speaker 4>It's CAUs to twelve percent twenty years over delivery for a.

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<v Speaker 2>Company with the market and the size that it has,

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<v Speaker 2>I mean, it's ridiculous, had I mean, the premium valuation

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<v Speaker 2>is one of those reasons. It's a ready valued high, right,

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<v Speaker 2>so when you have a premium stock, most people look

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<v Speaker 2>at like how much higher can it go? How much

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<v Speaker 2>higher can it go? And so that plays a part

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<v Speaker 2>in it. And then what we saw from their their

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<v Speaker 2>earner support last two weeks ago when we talked about

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<v Speaker 2>the heavy reinvestment, and so they've invested in infrastructure. That's

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<v Speaker 2>the reason why you now can have your products in

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<v Speaker 2>the same day. They have invested in AI and we

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<v Speaker 2>talked about that when cappex was increased by forty three percent.

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<v Speaker 2>So they're innovating. They're still making money, right, and you're

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<v Speaker 2>gonna love this because you love talking about gross profit margin.

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<v Speaker 2>Here's the last four quarters their gross profit margin and

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<v Speaker 2>June of twenty three sixteen percent, in September of twenty three, seventeen,

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<v Speaker 2>zero point one five percent in December of twenty three,

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<v Speaker 2>seventeen seventeen and a quarter percent March of this year,

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<v Speaker 2>nineteen and a half percent. In June of this year,

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<v Speaker 2>they just reported another nineteen in a quarter. And so

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<v Speaker 2>you're seeing they're making more money. They've figured out ways

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<v Speaker 2>to make more profit from the products and services that

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<v Speaker 2>they had as they've added more businesses. We've already talked

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<v Speaker 2>about their moat in the e commerce space and how

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<v Speaker 2>they enter spaces not just to say we want to

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<v Speaker 2>be a part of it, but to completely dominate and

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<v Speaker 2>take over them. Yeah.

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<v Speaker 1>I love Amazon, the greater CEOs all time.

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<v Speaker 2>I was going to that was the last point I

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<v Speaker 2>was going to make. We can't discount the fact that

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<v Speaker 2>they're seed, They've changed CEOs, and they've had a stock

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<v Speaker 2>split within the past four or five years, So sometimes

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<v Speaker 2>that takes change, right, Like who is actually going to

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<v Speaker 2>be as a CEO? Who is he going to be

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<v Speaker 2>as a leader of the company. I'd say he's done

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<v Speaker 2>pretty well. I love Amazon, not even just for the

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<v Speaker 2>short term, but for a long term perspective. It is

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<v Speaker 2>something that I mean, it's going to stay in my

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<v Speaker 2>portfolio and now I don't see why it wouldn't be

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<v Speaker 2>anybody else's.

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<v Speaker 1>Yeah, for sure, say your case, twenty is an amazing

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<v Speaker 1>return for a company that size, that has the entire

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<v Speaker 1>world on their back and trying to copy in either

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<v Speaker 1>way at their games.

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<v Speaker 4>Like if I would have told you eight years ago

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<v Speaker 4>Amazon would be outpacing Walmart is a safety stock, you

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<v Speaker 4>to said that was crazy. They've performed incredibly well enjoy

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<v Speaker 4>stable games.

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<v Speaker 2>We got to appreciate that. I'm looking at now. Apple

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<v Speaker 2>is up via the date is up seventeen percent. So

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<v Speaker 2>it's actually and we I mean everybody we talk about too, but.

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<v Speaker 4>Less turbulous and more in Apple. This IFHO sixteen, I

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<v Speaker 4>better be able to cause Kai Sanat on a damned

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<v Speaker 4>space ship. Don't re rock the same fifteen pro and

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<v Speaker 4>tell me you put three more megapixels in it. I'm

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<v Speaker 4>gonna go in here and go off.

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<v Speaker 1>Please innovate more megapixels more.

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<v Speaker 3>Hey k an.

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