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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Max2.0 who wrote (19042)	8/1/2025 12:56:29 PM
From: peterad	Read Replies (1) \| Respond to of 21904

I think their cloud service results were weaker than expected

To: Max2.0 who wrote (19042)	8/1/2025 1:10:12 PM
From: SeeksQuality	2 Recommendations Recommended By peterad stockpickeron Read Replies (2) \| Respond to of 21904

Re: SQ, can you help me understand why AMZN is having a rough day today? Missed the whisper number on AWS growth. A few dynamics going on here. Quarterly seasonality, with Q2 being a weak earnings quarter for AWS due to timing of expenses. A huge 36% rally since late April, so the market is primed for profit taking. And AMZN is transitioning from being a rapid-growth company to one that is massively profitable. As part of that they are taking their foot off the "growth at all cost" accelerator. Revenues continue to increase, at a ~11% rate. Net margins are increasing at a double digit rate (admittedly a bit lumpy). OCF increasing at a ~25% rate. I have them modeled at 20% EPS growth, a 25x terminal P/E, and 11%+ forward total returns. Those are excellent numbers for a company as strong as AMZN. This is a good time to max out your holdings. (By cancelling the option I'm up to a 5.6% position.)