When I wrote up the case for Amazon at $10 trillion, the stock had just run 23% in a week to $284 and I said I wasn’t backing up the truck at those levels. I said I’d add large chunks on each pullback instead, and that pullback is here. The stock sits around $252, down about 11%, and nothing about the business got worse in the meantime. If anything the thesis got stronger, and I’ll show you exactly where.
Interestingly, Amazon is still above its 12-month average share price range. Despite this, I’m going to continue accumulating shares.
So I’m adding $15,000 to the position by December 31, and every dollar of it comes from covered call premiums and capital my income portfolio throws off. Assuming that I can achieve passive income of $5,000 like I did in August, I believe I’ll be able to accumulate $15k more of AMZN relatively quickly.
I’m not going to repeat the four-business breakdown or the operating income math from last time, since that’s all in the earlier piece and none of it changed. What follows is what’s new, plus the part of the thesis I think I undersold.
I think Amazon AMZN 0.00%↑ is one of the clearest AI investments and it doesn’t require a stupid amount of risk. Accumulate shares and stay patient! Not to mention, AMZN has a sizeable stake in Anthropic.
Here’s why AMZN is a great stock right now…
