"I started the conversation by saying that one of my favorite retail stocks right now is Amazon. This is not an AI call and it is not an AWS hype trade. It is about the holiday quarter. Amazon's e-commerce platform is built to capture peak consumer demand, with massive scale, pricing leverage, and millions of third-party sellers operating inside its ecosystem."
"Lee pointed out that Amazon has underperformed the broader market this year, which matters more than most investors realize. Expectations are no longer stretched. Even a solid, not spectacular, quarter can move the stock if retail margins and volumes come through. Berkshire Hathaway still owns Amazon, making it one of the few major tech names it holds alongside Apple and Alphabet."
Amazon is well positioned to deliver a strong holiday-quarter performance because its e-commerce platform is built to capture peak consumer demand. The company benefits from massive scale, pricing leverage, and millions of third-party sellers inside its ecosystem. Lower investor expectations reduce the need for a breakout result; a solid quarter with improving retail margins and volumes could lift the stock. AWS remains a long-term asset, but near-term cloud and AI spending is more competitive and capital intensive and therefore not required to drive quarter-to-quarter results. Control of fulfillment, advertising, and transaction flow creates a durable e-commerce moat into year-end.
Read at 24/7 Wall St.
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