Amazon is technically sound with positive moving averages providing support, and it stands to gain from operating leverage and its secured compute assets.

Moving on to Amazon, start of the week at 263. Shares went up and down, roughly flat technically, kind of in a decent spot for Amazon. Shares closed at 258. That was down about 1.6%.

The company is piling into Austin, Texas like a lot of companies are to build a new robotics facility, essentially creating 300 to 500 manufacturing and engineering jobs.

My long-held belief is this $2.8 trillion company nearly a trillion dollars in annualized revenue are going to get a lot of operating leverage, otherwise known as profit, by cutting a lot of human workforce over the next decade.

SpaceX announced that Grok 4.6, which is their new AI model, is now generally available on Amazon Bedrock. Amazon Bedrock is something that you use if you have an AWS subscription or you have an application running on AWS and you want access to this model and maybe potentially, maybe even more importantly, a combination of models.

Let's say you have an AI application or you're doing something that you want access to maybe the Frontier, you want the Fable 5 access or the Chat GPT 5. whatever it's on, you want that access, but maybe you want to route some tasks through the more cheaper models out there including Grok 4.6, which is 2 million in $6 per million tokens out.

That is a fraction of the price of the leading edge models, which I think are closer to $25 on one end or the other. Well, Amazon Bedrock is where it happens and that is one of the reasons why AWS revenue is climbing so fast.

Pennsylvania Governor, the great Josh Shapiro, signed an executive order on Tuesday removing all data center projects from the state's permit fast-track program, including requiring them to do something about the grid and different types of energy.

Now, here's an interesting argument. I've heard, you know, smart people say this, and I do believe this to be true. One of the ways that you eliminate the risk of an AI bubble or these companies spending too much is actually these gosh-darn politicians getting in the way of the build-out.

Now, I'm not necessarily referring to Josh Shapiro, who I actually, even as somebody that votes somewhat conservatively, I actually really respect this guy. I think he's actually a good guy.

And I don't blame any state for wanting to restrict things or slow things down. No problem with that. As an investor, we do need to look at this from a rational point of view and say, "This does pump the brakes."

Who does this benefit? First of all, it benefits anybody with access to compute, particularly large amounts of compute. Some people will say, "Hey, that's all data center stocks."

I think you could make that argument. I would go a step further and say, "This benefits the data center stocks that don't need more and more revenue and profit stacked onto their business model," which is the neo clouds.

Do neo clouds need to continue to expand? I just did an article on my Substack about Coreweave. I mean, that company's losing money hand over fist. They need to continue to grow.

Well, if these states start to pump the brakes on the number of data centers that they can build, that's a problem. It's not a problem though for Amazon, Google, Microsoft, probably Meta as well, as they've secured enough compute that, at the very least, they got a valuable asset on their hands.

Now, Amazon is planning drone deliveries. We're going to eliminate humans in a number of different ways, including delivering the packages by drone in nearly 500 United States cities by the end of 2026.

You're going to get one of those crazy little flying drones dropping packages in your freaking backyard. This is amazing. I can't wait to try this out. I just have never been able to do it.

Amazon pulling back from its highs, closed the gap after earnings looks fine. You're just pulling back on your average again. Moving averages on the way back up, particularly the longer you stay under them, also if they are negative just like metas.

If they're sloping down into the right, if you're under them to get back over them is a heavy lift. Oftentimes you need some kind of fundamental thing to change. In the case of Amazon, you're above your moving averages and they're positive so they all act as support.