Trade Tracker: Bill Baruch buys more Amazon

About this video

• Video Title: Trade Tracker: Bill Baruch buys more Amazon
• Channel: CNBC Television
• Speakers: Bill Baruch, Joe
• Duration: 00:05:00

Overview

This video features an investment discussion about Amazon, with guest Bill Baruch explaining his recent decision to increase his position in the company. The conversation touches on Amazon's current valuation, its growth prospects, and comparisons with other tech giants like Meta, Nvidia, and Alphabet.

Key takeaways

• Amazon's Valuation: Amazon is currently trading at a historically low valuation of 25 times forward earnings, significantly below its historical average of 18 times EBITDA.
• AWS Growth: Despite its size, Amazon Web Services (AWS) is expected to re-accelerate its revenue growth to around 19% year-over-year, with profitability also improving.
• Bill Baruch's Investment: Bill Baruch has increased his Amazon position from 4.5% to 6% in his main portfolio and to 11% in his concentrated portfolio, viewing it as an opportunity ahead of earnings.
• Market Trends: The broader market is showing a constructive pullback pattern, with potential for new record highs. Opportunities are being identified within this trend.
• Meta Comparison: Meta is highlighted as a compelling alternative, trading at 21 times for 20% growth with expanding operating margins, and is expected to catch up to other "Mag 7" stocks.
• Long-Term Outlook: While the market may not be focused on valuation for 2025, Amazon is seen as a strong "2026 story" with significant potential once its value is recognized.