John Belton believes the Mag 7 still holds lots of power and make for compelling buys. As for specific trades, John mentions Amazon's (AMZN) Gen A.I.
It's been a rough month for Amazon.com Inc. (NASDAQ:AMZN), whose losses have mirrored the broad Nasdaq, which has officially entered correction territory.
Andy Jassy, CEO of Amazon (AMZN 2.09%), in a recent shareholder letter wrote, "Generative AI may be the largest technology transformation since the cloud (which itself is still in the early stages), and perhaps since the internet." That puts investors in front of a rare opportunity.
The current stock market correction has affected many companies, including Amazon (AMZN 2.09%). Amazon is down nearly 20% from its all-time high, and is actually near the cheapest the stock has ever been based on its price-to-earnings (P/E) ratio.
Since 1965, Berkshire Hathaway has rewarded its long-term shareholders with a phenomenal 20% annualized rate of return. That level of performance far exceeds the average gain of the S&P 500.
Equity markets have not performed well so far in 2025, with macroeconomic tensions, including President Donald Trump's trade wars, playing a role. On the bright side, the ongoing volatility could create excellent opportunities to buy shares of great companies on the dip.
There are two big challenges for buy-and-hold investors:
While the current robotics narrative is centered around cost savings (estimated $10 billion lift to operating income by 2030), it also cultivates beautiful synergies with AWS, creating top-line growth opportunities. Amazon has a historical strategy of first developing a service for internal use, and then eventually scaling out to serve external third-parties. Think of AWS cloud services which initially began as a platform to run its own e-commerce website, and ‘Buy with Prime' which extends the use of its fulfillment logistics.
Jed Ellerbroek talks about his top stock picks as tariff uncertainty continues to circulate in the markets. He labels Amazon (AMZN) as a dominant company not just in retail and ecommerce, but also in A.I.
Market corrections, like the recent dip, are normal and temporary, with historical data showing average declines of 13-14% since 1950. Long-term investors should stay the course. Corrections often lead to robust recoveries, with historical returns averaging 25% in the year following volatility like the one we just experienced. Asset allocation, not market timing, is key. A balanced portfolio of stocks and bonds has historically minimized risk and delivered consistent returns.
Several technical signals show that Amazon.com, Inc. stock is oversold. Its 14-period RSI dipped below 30 in recent trading days (for the first time since last August) and its prices fell below the lower Bollinger Band. Given the robust business fundamentals, I believe the selling is overdone.
E-commerce giant Amazon.com Inc (NASDAQ:AMZN) stock is down 2.4% to trade at $194, falling victim to the broad market capitulation.