AMZN is a buy on dips with a target of $360-$370 in about a year, driven by AWS expansion and proprietary hardware.

It's time to go deep on a tech name, looking specifically at Amazon in our tech spotlight. I'm looking at Amazon Web's numbers and and some of the things that you said it's very interesting to you because there are three stories that are happening at the same time. Tell us more.

Look, Am- AWS grew 37% last quarter, $42.2 billion. That's a big number and I think they're going to have a big beat, yes, coming up tonight and I'm excited about that.

Look, to me, this is the heartbeat of AI, right? You got to look at AWS and AI infrastructure and you got to look at ad spin. All three of those of those things actually are adding up to a very big number for AWS and for Amazon specifically.

They're in the data world. They are all about building up their own hardware, which I'm excited about, training and Graviton.

We understand that and so does Amazon. Amazon realizes, "Look, it's all about hardware." Again, it's hardware and hardware that brain, it's now all about the chips, the cloud, the data centers, the networking and the harnesses that are going into AWS.

Harnesses are how we actually work the AI and I'm excited about that because that's the biggest growth right now within Amazon.

And as we talk about the hardware part of the story, is there room for Amazon to be a competitor in that space? Absolutely and I think they're going to take over because they have one thing that everybody wants and that's the actual customers.

They literally have the businesses, they have the retailers and they have the people that are buying and the selling, all the vendors too as well. They've got the customers on both sides of it.

It's like going to a baseball game and playing both teams, and you don't care who wins cuz you're going to win no matter what. AWS is sitting in the forefront of all of that, and I'm excited about that because they're also building the AWS chip set.

They're no longer just relying on Nvidia, they're also building their own chips as well.

When I think about Amazon, of course we also just think about the retail side of the story. Do these need to be separate companies at some point because how will you look at earnings every season, and how do you think they'll do on the next earnings report, for example, when you have these two side-by-side stories?

Yeah, that's a great question, Nicole. I mean, obviously, monopoly is a big always a big question around it, and you know, the FTC is already looking at their ad revenue, and that ad revenue's growing at 27%.

I totally get that. No, I mean, Amazon is a big company, they grew it themselves, that's their company, they know how to to do this, and they're doing it quite well.

So, here's what I think. I think we're looking at Amazon, it has to be a what I call an ecosystem, and they built that ecosystem. They built it around vendors, they built it around buyers, retailers, they have built it around the whole system.

And so, they have that data point of how to put it all together. They're not just doing it, they're also building the pickax and the shovels, all the things around it. No, I really don't want to see Amazon breaking up into three different companies, I want to see Amazon building and growing out their ecosystem.

How do you feel when you talked about the advertising growth and the spend that we've been seeing and that the growth in their revenue was about 26%, and you mentioned advertising trust. Why is that part of the story?

That's a very good question. The FTC is going to go after them on that. 22 states also looking at their ad advertising and how they advertise. Look, we all get advertised to every single day and I understand that it's a tough situation right there for FTC.

But I'm not worried about their suit. They'll probably shake out their pant leg and pay it off and write the check and it'll be gone. And at that point they can go on with their their lives and maybe they have the The one thing I'm really worried about is that they change how they actually advertise to us.

When you look at a a pencil, you're going to get 35 different pencils. You look at a t-shirt or a shirt or you're going to get something, you're going to get different shirts and you're going to and you they they know what you're looking at.

They know what you're thinking about. They know what you need. They know you bought a gallon of milk and of course they've got the grocery stores too as well. So look, they've got a lot going on and and they've also gotten into pharmaceuticals as well.

So they've got a huge ecosystem. Um but you know what? For me it's how they advertise. Everybody's advertising. So the FTC's got to go after everybody, not just the Amazon.

So so it's a push. You're not particularly worried about what comes from this FTC's advertising lawsuit, it sounds like. And if they do, Amazon has so much money it doesn't matter anyway, I guess.

When I look at the stock, I mean over 3 years it's gone from $118 up to $287. So a nice run. What kind of upside potential does this stock have? Is this a stock that you would buy on dips?

I know it's pulled back from the highs recently.

That's exactly right. It may have pulled back on dips and I love dip buying, Nicole, as you know. And I have been buying Amazon over the last 10 days, just straight buying. I can't stop buying.

I love Amazon here. I think Amazon is the future and we know that.

Yeah, we may tamp it down a little bit, but AI is the key and they have the pickaxes and shovels. They have the data. They have the vendors. They have the retailers. I'm excited about AWS and I think we should go about 350, 360, 370 a share. I'm going to hold it all the way through.

The thing that I thought was interesting that you wrote also when you talk about the advertisers and the spenders is that the folks using Amazon you said already have their wallets out and that gives them an edge on the competition. Explain.

Yeah, I mean when you would talk think about from business perspective you have AWS, right? Whether that's your websites or your data that the back end. They're already spending and what they want to do is spend more for their AI, for Amazon's AI.

How to implement it into their own systems, into their own selling of their own products. Let's say they have a hammer and they're trying to sell more hammers. They're going to use Amazon's data on other vendors and Amazon has the data to sell to them.

So they literally have the plethora of data and they have the plethora of of of users.

And do you have a target price on Amazon or no? I mean would you say it would move up 10% from these levels? Are you comfortable with that kind of summation?

I like 30, 40% return and I'm looking at 360, 370 on Amazon. I think we have a heck of a run here. Yeah, probably it's going to take about a year but I think this is where we're going to go.

I I think if we get away from the zero DTE trading and we actually think about maybe investing in the company a little bit longer term, you're going to get a heck of a return here.

But I I also think that Amazon's also telling you the next level of Amazon and what they're also looking at and that's the graviton and the tranium that they're also building too.

They're building out newer divisions within Amazon so that growth could actually be exponential and not just in percentages.