AMZN is a strong long-term buy; excellent management and growth in AWS (36.7% YoY), advertising, and AI infrastructure support the thesis.

Well, speaking of the major players in e-commerce, your next choice, Neil, is a leader in this field. Yes, my next choice is a small company called Amazon. It's... just a small family shop. Yes, a small business from the nineties.

Oh no, I chose Google as my first choice. As I said, the second choice is also in the same category of giants, namely Amazon.

I said that Google “Alphabet” is one of the best internet or technology companies out there. I think Amazon as a whole is one of the best-managed companies on the planet.

Amazon is a company whose marketable product has continued to expand more and more over the years, and this is probably why it is the first company to achieve trillion dollars in revenue.

I think it is expected to happen in fiscal year 2028. So, not too far off from today.

Now, what drives Amazon's business today is, of course, AWS, Amazon Web Services. It has grown by 36.7% year-on-year. The backlog of orders is also growing here. Profit margins are expanding.

There was a period when AWS experienced a slowdown. That's why Amazon's stock was penalized and people are saying, "Oh, they're not moving fast enough, etc. , etc." But we saw businesses accelerate and become , well, more profitable.

But that's not all. We have the advertising sector , which can be considered one of the largest advertising sectors currently in existence. We also have the subscriptions sector, which is growing very rapidly, and all of these things are just sub-sectors of their business.

Yes, it is true that the online store still makes up a very large part of the revenue, but as I said, their total targetable market is growing. Every two years they add more and more.

But AWS service did not exist at the beginning of the century. When she started, people looked at her and said, "Well, why are you building this kind of business in the first place?"

Well, I don't think they're asking that question today.

We have seen them offer something called "logistics as a service". Think of it as AWS, but for supply chain services. Thus, they are careful to ensure that everything they have invested in over the past two decades or so, just like AWS, is the same plan.

We invest in our own businesses because we need them. Then when we reach the desired range, we say, "Okay, it works for us, so it will definitely work for many other companies."

Now, they have expanded into the medical field. They are investing in satellite communications through Project Kuiper. They are doing many things at the moment. Yes, I believe they are investing $200 billion in capital expenditures this year.

Most of it goes towards investment in artificial intelligence, but also in logistics. This number is likely to be even higher next year.

But Amazon's core business is extremely profitable. It already generates tens of billions of dollars for them. We have seen this happen time and time again. During the investment cycle, free cash flow decreases and becomes negative.

We see this with many large technology companies. But after a while, they will say, "Do you know what? We are investing a lot. We will continue to invest heavily, but the pace of growth of those investments will decrease.

Because it makes business more efficient, it speeds up some business sectors, as we have seen. We will see the company's free cash flow profile return to the upside, in my opinion, very quickly, much faster than the market or perhaps investors might think.

So, for me, Amazon is once again one of those companies. Yes, this may not be the next time it multiplies 5 or 10 times from here. But if you are looking for a company that guarantees its current business will continue to improve, and its target market will expand day by day, then it is one of the companies that I don't think should be excluded from any investor's portfolio.

Yes, Amazon is another long-term investment for me.

I think it is important to point out, when we talk about developing artificial intelligence infrastructure, that there are many companies that are not equipped to withstand this era.

I see Amazon as an example of a company that spends billions to keep up with demand, which is a real demand indeed. But it is also actively working to improve its core business, which has boosted its profitability over the years.

I mean, look at the Amazon Cloud Services (AWS) business you were talking about, Neil. Revenue growth of approximately 37% in the last quarter. That was its fastest growth rate in more than 4 years.

We are now talking about an annual revenue rate of approximately $170 billion for this sector.

Andy Jassey pointed out that if AWS were an independent company, its revenue alone would have placed it at number 24 on the Fortune 500 list.

This is an example of a company, and that's why we talk so much about the "Big Seven" when discussing AI investment, because they are companies like Amazon that are already showing profits and growth resulting from their AI investments.

They have their own businesses dedicated to artificial intelligence chips, such as Graviton and Trinium chips. These chips now generate over $25 billion in annual revenue.

Their “Bedrock” platform, which enables companies to build external AI models, now offers “OpenAI” and “Anthropic” models, and reports indicate that customers spent more on “Bedrock” in the second quarter of this year alone than they spent in all previous quarters combined since its launch.

So, I think there are many ways artificial intelligence makes this company a compelling story, but ultimately you are looking at traditional Amazon evolving its business for a new era, and that is something I find compelling as a long-term shareholder.

Before I leave you to talk about the last part, as I said regarding their custom chip businesses, Trinium and Graviton, at a rate of $25 billion each, which means that together they form one of the largest chip companies in the world.

But this is just a sub-sector of a company like Amazon.

Again, the beauty of this business is that I feel investors still think selling subscriptions to an AI-powered chatbot is a valuable business model, but it isn't. That's not the case.

Yes, so having a company like Amazon will prevail regardless of which robot wins, because the core of its business is very good. I think this makes me sleep more comfortably at night.

Neil and I talked about four completely different companies today. On one hand, we had two key members of the Big Seven, Alphabet and Amazon, who are long-standing favorites in my investment portfolio.