AMZN is undervalued; approval of paid robo-taxi rides creates a high-margin recurring revenue stream that supports a long-term bull thesis.

You go look at Microsoft and Meta and Amazon. They're importing hundreds of billions of dollars of semiconductor equipment and telecom equipment and things of that nature.

We both think that Nvidia is cheap, Amazon is cheap.

So if you think about it, between Meta, Alphabet, Microsoft, and Amazon, we're looking at combined AI related capital expenditures approaching 500 billion in 2026 alone. Meta at 130 to 145 billion, Alphabet at 195 to 205 billion, and Microsoft and Amazon have not yet updated their guidance this week.

I've got a ton of Apple. I got a ton of Microsoft. I'm going to got, you know, Amazon, Tesla, Alphabet. I think it's all great. I'm not selling any of this stuff. I'm buying more. I'm going to got, you know, Amazon,

My second story today is Amazon Zuks is finally approved for paid rides. You heard it. Amazon just got approval to start charging for robo taxi rides, making it the first purpose-built autonomous vehicle without a steering wheel or pedals to get that clearance.

They've been given free rides in Vegas and San Francisco, racking up over a half million passengers, and will start charging in Las Vegas next month. The NHTSA is capping them, however, at 2500 vehicles per year for the first two years while they build out the proper oversight and framework and simultaneously announced plans to create the first national AV safety standards replacing the current patchwork of state and local rules.

So, pretty crazy story, but I wanted to definitely cover that because Amazon's got a large moat and they are ahead of the game in this robo taxi category.

Dude, I'll tell you what, that Amazon one I'm so excited for because Amazon is this business that does four, five, six, 700 billion dollars a year of revenue. I don't even know the number.

Hundreds of billions of dollars a year in revenue. But their actual like operating margins are so thin because you know they they don't have a high margin business per se. Their their marketplace isn't high margin.

Their highest margin business is Amazon Web Services, the AWS, and that really drives all of their earnings. But as their advertising business starts to, you know, inch higher, that that drives margin expansion as their international marketplace uh business, you know, has has wider margins.

That that's going to help as well. But now we've got autonomous vehicles, which I don't know how high those margins are, but they got to be 30, 40, 50, 60%. Right? Cuz there's no driver to be paid.

So now you've got these autonomous vehicles. That is a high margin recurring business that who doesn't want to go sit in a rolling toaster, right? Because the it's going to be a cheaper ride than perhaps a cab or even an Uber.

You don't have to talk to someone. Someone's stinky. Like you're just hanging out in this like little toaster on wheels. Like that to me is interesting. I know they're only at 2500 vehicles right now per year for the next 2 years, but fast forward 10 years because I'm a shareholder for 10, 20, 30 years.

You now have an Amazon that maybe they're doing billions if not tens of billions of dollars of operating margin more because of their autonomous vehicle rollout with Zuks.