The total revenues of Amazon, Apple, Alphabet, Microsoft, Meta, and Nvidia together do not make up $2 trillion. So you see why leverage is being used to build those data centers. ...

Core Viewpoint - Amazon.com Inc. is facing challenges due to a significant decline in free cash flow, primarily driven by increased capital expenditures related to artificial intelligence and cloud expansion, making it a difficult investment choice [1][2]. Financial Performance - Amazon's free cash flow is projected to decline sharply through 2025 and into early 2026, with specific quarterly figures indicating a drop from $25.9 billion in Q1 2025 to $11.2 billion in Q4 2025 [2]. - The company plans to increase capital expenditures to approximately $200 billion in 2026, representing a $70 billion year-over-year increase [2]. Market Position and Strategy - Jim Cramer has shifted his perspective on Amazon, previously defending it during a selloff, but now acknowledges that it has transitioned from being perceived as cheap to expensive for many investors [4]. - Cramer has identified Alphabet Inc. as a more attractive investment within the mega-cap tech sector due to its aggressive AI infrastructure initiatives [4]. Investment Metrics - Amazon's Benzinga Edge scorecard indicates a weak value score of 58.94, suggesting the stock is trading at a premium compared to peers [6]. - The company has a strong quality score of 71.7, reflecting robust financial health and profitability [6]. - However, Amazon's momentum score is weak at 14.69, indicating underperformance relative to the broader market [6].

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Market Overview - The stock market rebounded last week, with the Nasdaq ending a five-week losing streak, rising 1.9% due to strong performances from major tech companies like Meta Platforms, Nvidia, and Amazon [1] - The S&P 500 increased by 1.1%, breaking a two-week decline, aided by a Supreme Court ruling against President Trump's emergency tariffs [1] Supreme Court Ruling - The Supreme Court ruled 6-3 against Trump's tariffs, stating that no president had previously used the statute to impose tariffs of such magnitude, requiring clear congressional authorization for such actions [1] - Following the ruling, the S&P 500 rose 0.7%, although some companies like Nike experienced a decline due to ongoing tariff concerns [1] Big Tech Performance - Major tech stocks saw significant gains, with Meta up 2.5% and Nvidia up 3.8% after Meta announced plans to use Nvidia's chips in its data centers, highlighting strong AI demand [1] - Amazon's shares surged 5.6% after a regulatory filing revealed that Bill Ackman's Pershing Square increased its position in the company [1] - Alphabet's stock initially lagged but later rallied to end the week up 3% [1] Private Credit Concerns - Concerns in the private credit market arose from Blue Owl Capital's decision to restrict withdrawals from its private debt fund, causing a nearly 6% drop in its shares [1] - Major private asset managers like Ares Management and Blackstone faced significant declines, with Ares down 8% and Blackstone down 6.6% [1] - Despite these concerns, BlackRock's exposure to private credit did not raise alarms, as its shares only dropped 1% before recovering [1] Portfolio Adjustments - Capital One was the only financial stock traded last week, with additional shares purchased [1] - The company exited its position in Texas Roadhouse due to concerns over ongoing beef inflation issues [1]

Group 1 - Phemex has completed the full integration of Ondo Finance's tokenized equity suite, positioning itself as a leader in the Real-World Asset (RWA) revolution [1] - The platform now offers its 10 million global users seamless access to a diverse selection of 14 traditional blue-chip assets in tokenized form, including major companies like NVIDIA, Tesla, Apple, and Amazon [1] - This strategic initiative emphasizes Phemex's commitment to accelerating the convergence of Traditional Finance (TradFi) and Web3, enhancing capital efficiency and portfolio diversification for users [1] Group 2 - Phemex, founded in 2019, is a user-centric cryptocurrency platform trusted by over 10 million traders worldwide, offering spot and derivatives trading, copy trading, and asset management products [1] - The platform aims to provide reliable tools, inclusive access, and evolving opportunities for traders at all levels, prioritizing user experience, transparency, and innovation [1]

Core Viewpoint - Bill Ackman, through Pershing Square Capital Management, has made significant investments in Meta Platforms, indicating a bullish outlook on the company's future growth potential, particularly in the context of its advertising revenue and AI initiatives [4][5][6]. Investment Strategy - Ackman's investment strategy involves taking large, concentrated positions in high-quality businesses, often supported by deep research [2][3]. - In Q4, Ackman exited his position in Chipotle Mexican Grill and increased his stake in Amazon by approximately 65%, now holding about 9.6 million shares [3]. Meta Platforms Investment - Pershing Square acquired around 2.7 million shares of Meta Platforms, valued at approximately $1.8 billion, making it the fund's fifth-largest holding, accounting for about 11% of the total $15.5 billion portfolio [5][8]. - The investment in Meta was opportunistic, occurring after a significant drop in the stock price due to concerns over AI-related capital expenditures [5]. Financial Performance - Meta generated $200 billion in revenue in 2025, reflecting a 22% year-over-year growth, primarily driven by its Family of Apps segment [7][8]. - The Reality Labs division, which focuses on wearables and metaverse projects, incurs losses that account for about 25% of overall profits [7]. Advertising and AI Impact - Meta's AI-driven ad ranking system has proven to be highly effective, delivering four times more revenue impact compared to simply increasing ad load [8]. - The company is currently trading at 22 times forward earnings, indicating a valuation that reflects its growth potential [8].

Amazon - Amazon is enhancing its competitive edge by rolling out an advanced version of Alexa and doubling its capital expenditures to $200 billion for AI data center infrastructure [4][5] - Amazon Web Services (AWS) is a significant profit driver, accounting for 56% of Amazon's operating profit in 2025, and the company aims to strengthen its capabilities in response to rising AI cloud competition [5][6] - The AI cloud services market is projected to reach $2 trillion by 2030, with Microsoft gaining market share from AWS, highlighting the need for Amazon to invest strategically [6] Home Depot - Home Depot's sales increased by 5.6% to $126.5 billion in the first nine months of 2025, but earnings fell by about 2% to $11.68 per share, with third-quarter results missing estimates [7][8] - CEO Ted Decker attributed the sales decline to storms in Q3 and ongoing pressures in the housing market, which are affecting consumer demand for home improvement [8] - The housing market is experiencing significant challenges, with a reported 8% drop in housing sales from December to January, leading to a "new housing crisis" that negatively impacts Home Depot's business [9]

Core Insights - Amazon's custom chips have reached a $10 billion annual revenue run rate with triple-digit year-over-year growth, indicating significant momentum in its chip business [1] - The adoption of Graviton 5 among the top 1,000 AWS customers exceeds 90%, showcasing the strong demand for Amazon's advanced CPU for cloud workloads [1] - Amazon's chip revenue is approximately 60% of AMD's data center sales and is growing at a rate three times faster, highlighting its potential in the semiconductor market [1] AWS Chip Operations - Amazon's chips business is gaining significant traction, with Trainium and Graviton achieving a combined annual revenue run rate exceeding $10 billion [1] - AWS segment sales rose 24% to $35.6 billion in Q4 and 20% to $128.7 billion for the full year [1] - Trainium 2 is fully subscribed with 1.4 million chips deployed, supporting major AI workloads and projects [1] Competitive Landscape - Amazon's chip revenue, while only 1.4% of its total projected $716.9 billion in 2025 net sales, is on a trajectory to potentially rival AMD's data center revenue [1] - AMD's data center revenue reached $16.6 billion, a 32% increase from the previous year, but Amazon's captive demand from its ecosystem provides a competitive edge [1] - Amazon's in-house chips enhance margins directly, contrasting with AMD's need to compete for each new data center contract [1] Investment Considerations - Amazon is positioned as an underrated player in the semiconductor sector, with its custom silicon driving AWS expansion [1] - While AMD remains a strong semiconductor stock, investors should consider Amazon for its growth potential in the chip market [1]

Amazon and Meta Platforms are two top growth stocks to own.When looking for stocks to hold for the next decade, you want market leaders with strong growth opportunities ahead that trade at reasonable valuations.Let's look at two growth stocks to buy and hold for the next decade. 1. AmazonAmazon (AMZN +2.59%) is the market share leader in both e-commerce and cloud computing. The company became the dominant player in e-commerce by aggressively building out its logistics network to become the largest in the wo ...

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] - The article suggests that investors may soon regret not owning shares in a specific AI company that is positioned to capitalize on this technological wave [9]