Amazon’s $38 Billion OpenAI Deal — And Why We Were Already Bullish on the Stock

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Speaker 13 Today's number?

Speaker 13 95,000. That's how many Japanese citizens are more than 100 years old.
That makes Japan the the second oldest region in the world, just behind DC.

Speaker 13 Welcome to Property Markets. I'm Ed Elson.
It is November 4th. Let's check in on yesterday's market vitals.

Speaker 13 The S ⁇ P and the NASDAQ rose to start the month with gains from Amazon boosting the indices. More on that later.
The Dow declined as most stocks outside of big tech ended the day lower.

Speaker 13 The yield on 10-year treasuries increased as the government shutdown reached its fourth week. Bitcoin sank amid a broad crypto sell-off.

Speaker 13 And finally, Palantir stock popped in after-hours trading on better than expected earnings and strong guidance for the current quarter.

Speaker 13 Okay, what else is happening? The Supreme Court will begin hearing arguments tomorrow on whether Trump can use emergency powers to impose tariffs.

Speaker 13 Trump's challenges will argue that the trade deficit is not an emergency and that tariff power belongs to Congress, not the White House.

Speaker 13 Meanwhile, the government will argue that the president does have broad authority to impose these tariffs and that rolling back the tariffs would hurt the U.S.

Speaker 13 Three lower courts have already ruled against the administration. The Supreme Court will have until June to issue its decision, but most expect a ruling to come by January.

Speaker 13 While the justices consider whether any of this is actually legal, the tariff announcements continue to roll in.

Speaker 13 On Thursday, Trump established this framework for a deal with President Xi Jinping just three weeks after threatening 100% tariffs on Chinese imports. The U.S.

Speaker 13 agreed to reduce tariffs on Chinese goods by 10%. And in return, Beijing pledged a tougher crackdown on fentanyl.

Speaker 13 Meanwhile, new tariffs on medium and heavy-duty vehicles and buses took effect on Saturday. All told, consumers are still facing an average effective tariff rate rate of 17.9%,

Speaker 13 the highest since 1934.

Speaker 14 Okay,

Speaker 13 here with on-the-ground experience navigating these tariffs, we are speaking with Ryan Peterson, founder and CEO of Flexport, a global logistics and supply chain management company.

Speaker 13 Ryan, thank you very much for joining us.

Speaker 14 It's great to be here. Yeah, something bad must be happening in Tariff's world when you call me.

Speaker 14 Exactly.

Speaker 13 You're the only one who's actually experiencing this and understanding what's really going on here.

Speaker 13 So obviously, there's the Supreme Court, which is having the hearings on whether these tariffs are actually legal. That is ongoing.
We will have a decision by June.

Speaker 13 That is the rule.

Speaker 14 Perhaps we'll have one earlier.

Speaker 13 But last time we had you on. It was about six months ago.
We were talking about tariffs and the word you used to describe the business environment was paralysis. Where are we now?

Speaker 13 And is that still the word?

Speaker 14 Yeah, it's, you know, and the reason I said paralysis is it was just very difficult for people to make decisions because it was all changing so fast in terms of which countries were being hit with what duty rates.

Speaker 14 I think we have a lot more information than we did. When was that four or five months ago?

Speaker 14 It's a little bit more clear. I mean, this latest deal with China, where they've really lowered China down to the levels even below India and Brazil, it gives you, I guess, a fair amount of clarity.

Speaker 14 And by the way, it now shows you that being paralyzed before was the right answer, because if you did move your production to India, then all of a sudden your tariffs are higher than if you would have kept it in China.

Speaker 14 So

Speaker 14 people are still in a bit of a wait and see mode, maybe more than before. And there's probably some degree of regret of people who acted too quickly who are now going.

Speaker 14 I've met at least a couple of companies who started shifting manufacturing to Indonesia and Vietnam and are now saying, wait, it's not worth it. China's got lower duty rates.

Speaker 13 So what does this mean for prices? I mean, I think what you're describing here is a state of paralysis,

Speaker 13 maybe a little bit of taco.

Speaker 13 Does that result in people actually not changing prices? Does that mean that

Speaker 13 the tariff costs aren't being passed through because they don't really know what's going to stay and what isn't?

Speaker 14 People, the brands that we work with largely did pass through some degree of price increase.

Speaker 14 Remember that the tariffs, although high, are only on the wholesale cost. And people tend to mark brands tend to mark their wholesale cost up three to five times by the time a consumer's buying it.
So

Speaker 14 a 20% duty,

Speaker 14 you know, it's really divide that by

Speaker 14 three or by five in terms of what the price increase will be. And you have seen that in the e-comm world in particular.
So you have seen some degree of price increases coming through.

Speaker 14 Brands are always very reluctant to increase price because they don't know what's going to happen to their demand and can't afford to shrink. You're also seeing a real goods recession right now.

Speaker 14 And the economy is not in a recession. Probably because of services, data, AI, data center buildouts.

Speaker 14 There's a lot of incredible amount of stuff happening in the energy sector to meet the demand for that. But

Speaker 14 if you look at the movement of goods, it's freight movements are way down in the economy.

Speaker 14 Some of these leading indicators, you know, the volumes at the ports are down quite a bit, especially from China, which is our biggest import partner from an ocean standpoint, down about 20% year over year.

Speaker 14 So now, ironically,

Speaker 14 a recession in goods might actually decrease prices because it gets very competitive and brands, you know, they have to accept less margin and they'll start selling stuff cheaper.

Speaker 14 So it's always a very complex dynamic to just to pin down to one metric.

Speaker 13 Yeah. When we look at just the inflation, which was 3% in September,

Speaker 13 it's going up. It was at 2.3%, 2.3 and then it's been continually rising after the tariffs.

Speaker 13 But it is still lower than some expected. Some people were expecting it to be higher than 3%.

Speaker 13 And I have heard the argument made that because it is lower than expected, tariffs are not that big of a problem or they are not causing the pain that we really thought.

Speaker 13 I'm suspicious of that because my view on it seems to be that, as you say, there's paralysis. So brands are reluctant to pass the cost through, but they are passing them through.

Speaker 13 And eventually they will pass the full cost.

Speaker 13 But as someone who's on the supply chain side, what do you think when you hear that argument, when people say, well, look at inflation, tariffs aren't as bad as all the naysayers said?

Speaker 14 Yeah, well, you have to remember that the tariffs were paused on Rest of World. and there was a hiatus and it didn't really come live until the end of August.
So this is pretty new.

Speaker 14 And it does take these brands time to decide their positioning, their pricing strategies, what to pass through. The other thing is that we've seen just a huge rise in fraud.

Speaker 14 And our analysis, we're going to publish soon, but our analysis is that around 10% of all freight that's coming into the United States from China has shifted terms to where the Chinese companies are importing it into the U.S.

Speaker 14 instead of the American companies importing. Wow.

Speaker 14 And it's a subtle distinction, but the United States is the only country in the world where foreign foreign countries can import goods into the country.

Speaker 14 Every other country on earth, you need to have an entity, foreign companies. We're the only place that allows foreign companies to import goods.

Speaker 14 Every other country in the world, you need to have an entity.

Speaker 14 It could be wholly owned as a foreign company, but you have to have an entity that serves as the importer. In the United States, you don't.
So a foreign company can just import goods.

Speaker 14 And if they lie about the valuation and they say, hey, these goods that are worth $100,000, they tell customs are only worth $10,000.

Speaker 14 If they are caught, we don't have agents in foreign countries like China to go and prosecute trade compliance violations like that.

Speaker 14 So we're seeing around 10% of U.S. trade has shifted terms in a way that indicates just massive amounts of fraud.

Speaker 14 It's 60% of all the Amazon sellers are Chinese, what's called a non-resident importer, meaning the overseas companies imports the goods.

Speaker 14 So I think, you know, markets find a way and black markets also tend to pop up when the incentives are there. And so we're just seeing a huge amount of fraud and evasion of these customs duties.

Speaker 14 And that could also be partially to explain why it hasn't hit inflation, is if they're cheating and not paying the duties.

Speaker 13 When you think about how this is playing out, who are the winners and the losers in tariffs right now? It sounds like

Speaker 13 foreign importers are, in a sense, a winner because they have a fraudulent network that allows them to evade the tariffs in a way that perhaps American importers can't.

Speaker 14 We should caveat that. Say fraudulent foreign importers are benefiting.
Yes. There's plenty of good ones and plenty of companies that are above board, regardless of where they're from.

Speaker 14 But yeah, that would be an obvious winner. I think generally companies that are

Speaker 14 maybe it's you say agile companies, it doesn't always mean that you make a rapid fire decision. You might be the best thing to do is to stay still.

Speaker 14 And, you know, paralysis is probably the wrong answer, but staying still can be okay if that's your interpretation. But businesses that are

Speaker 14 able to adapt quickly to change have done the best.

Speaker 14 By the way, customs brokers are doing very well, Flexport being one of them. People that

Speaker 14 the reason is we provide advisory services and solutions for companies dealing with customs.

Speaker 14 So obviously the more regulated and challenging those regulations become, the more demand there is for that kind of advice and consultants and things like this.

Speaker 14 So I think that that's a category of businesses that's doing well.

Speaker 14 And Latin America is reasonably well off here. Their tariffs have been much lower than those imposed on Asia, other than Brazil.

Speaker 14 But the tariffs throughout Latin America, besides Brazil, are at lower levels than Asia. So they're gaining a leg up there.
We'll see how good they are at taking advantage of that.

Speaker 14 They don't have the same manufacturing scale, capability, quality as China does.

Speaker 14 But there's a big opportunity for them if they can seize it.

Speaker 13 And then losers?

Speaker 14 I would say American e-commerce companies, the e-commerce brands are really suffering, especially people that were using what's called the de minimis.

Speaker 14 Some people call it a loophole. I think it was just a law, but de minimis exemption,

Speaker 14 which meant that there was no duties on goods under $800.

Speaker 14 So the Trump administration killed that on goods from China effective May 2nd and goods on rest of the world at the end of August.

Speaker 14 So those people were paying no duties and had a huge leg up and have now gotten, you know, now they're paying full duty, which is at high rates.

Speaker 14 And then closely related, they were doing that out of fulfillment centers in Mexico and in Canada.

Speaker 14 You know, there's some big Chinese e-comm providers, Xin, Timu, TikTok, that fly the goods in from China under this exemption, or they used to.

Speaker 14 But actually, a huge number of American brands were setting up fulfillment centers in Tijuana. and in Canada.

Speaker 14 And then if you ordered something from them, it would be made in Vietnam, but shipped from Mexico direct to consumers. So there was no duty on that.
That's gone away.

Speaker 14 It's really hit hard, these fulfillment center jobs in Mexico.

Speaker 14 And I suspect you'll probably see some bankruptcies from the fulfillment companies themselves that have set up on the border, lost a huge amount of customers. That's getting reshoring, reshored.

Speaker 14 Um, so that there's now the, because there's no reason to do fulfillment from Mexico, it's going to slow you down. You're better to put that fulfillment center closer to your customer.

Speaker 14 Um, so that's a loser, uh, probably the consumer. I do think there's more inflation that's being shown there in the stats.

Speaker 14 I think that if you look at e-commerce products in particular, prices have gone up.

Speaker 14 So yeah. Probably more we could list out, but free trade in general, Milton Friedman's rolling in his grave.

Speaker 13 Yes, exactly.

Speaker 13 Just looking ahead here, we've got the court decision. I'd like to know what you think.
The court is going to rule. We've had the lower court say that

Speaker 13 it's illegal. We'll see what the Supreme Court says.
And I'd also like to just get your views on how this will play out long term. Like, will we see these tariffs a year from now, two years from now?

Speaker 14 Are these here to stay? Yeah, you know, I get a lot of different reads from different

Speaker 14 lawyers who are experts in what will the Supreme Court say and do. I'm sort of a market maximalist here.
I'm going to go with Pauli Market right now.

Speaker 14 It's got a 35% chance that the Supreme Court rules in favor of Trump. So 65% chance that everybody gets a refund.
It probably seems as good as anything.

Speaker 14 It'll be very interesting to follow that one real time and see if it leaks at some point, right? If that market moves very quickly before it's announced. The other indicator there is the

Speaker 14 currently you can sell your right to these refunds and they're investment banks that are brokering these transactions and you're getting about 25 cents on the dollar if you sell your refund now.

Speaker 14 So that's probably your range that

Speaker 14 and that, you know, somebody's trying to make a profit on that. They're not doing that just to like, yeah, to get their not, that's not saying there's a 25% chance.

Speaker 14 It's must be higher than that, that it gets turned over, or they wouldn't buy it smart money.

Speaker 13 Yeah. It sounds like you think that a year from now, probably

Speaker 13 not looking as affected by tariffs as we are today, or maybe there are no tariffs.

Speaker 14 Yeah, I'm just going off the markets. I don't really have a good insight in the Supreme Court.

Speaker 14 I think the Supreme Court is more of a political body than it is a legal one in a lot of ways. So the counter argument to that is just, well,

Speaker 14 Trump appointed a lot of those people. And

Speaker 14 it is

Speaker 14 a right-wing court at this point. So you would, but who knows?

Speaker 14 I do know that the Trump administration will spin it as a win either way, right? Not market will boom, but they'll go, look what we did.

Speaker 14 Exactly. There's always a way.
I think Ben Franklin says good to be a reasonable person. You can come up with a reason for anything you want to

Speaker 13 I think that's the right prediction there.

Speaker 16 All right.

Speaker 13 Ryan Petson, founder and CEO of Flagsport. As always, really appreciate your time.

Speaker 14 Likewise, thanks for having me.

Speaker 13 After the break, the maker of Tylenol gets acquired. If you're enjoying the show, give Prof G Markets a follow.

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Speaker 13 We're back with Property Markets. Kimberly Clock announced it is acquiring Kenview in a deal valued at $48 billion.

Speaker 13 The deal would bring together some of the most recognizable consumer health brands in the world, such as Huggies, Kleenex, Band-Aid, and Tylenol.

Speaker 13 And if approved, the combined company would generate an estimated $32 billion in net revenue next year. Kenview shares jumped 20% on the news.

Speaker 13 Kimberly Clark shares fell 15%, the most in a quarter century. As a reminder, Kenview was spun off from Johnson ⁇ Johnson just last year.
Since the IPO, the stock has fallen 35%.

Speaker 13 The company has struggled to gain momentum on its own, weighed down by softer consumer demand, price cuts, and inventory reductions. Then came the Tylenol controversy.
U.S.

Speaker 13 Tylenol sales fell 11% last quarter after Trump links Tylenol use to autism and shares in Kenview, the Tylenol maker, fell. 22% in the weeks that followed.
Now comes this buyout from Kimberly Clark.

Speaker 13 The company is paying $21 per share. That is a 46% premium to where the stock closed on Friday.

Speaker 13 But it is worth noting, Kenview traded at roughly that same level just a few months ago before the Tylenol controversy.

Speaker 13 So here to help us unpack this acquisition, we are joined by Dan Primack, business editor at Axios and the author of the daily ProRatter newsletter.

Speaker 13 Dan, thank you very much for joining me on Prof View Markets.

Speaker 16 Thanks for having me.

Speaker 13 So Kenview, which was spun out of JNJ,

Speaker 13 there are a lot of questions about how this company was going to fare. It is now being acquired or Kimberly Clark has announced it is acquiring it for $48 billion.

Speaker 13 Let's just start with your top line reactions. Any

Speaker 13 initial thoughts on this deal?

Speaker 16 Well, I mean, from Kimberly Clark's point of view, even though their investors hated this deal today when it got announced, the strategic rationale does make a certain amount of sense, right?

Speaker 16 Kimberly Clark is known for selling things like Huggies and toilet paper, and it wants to move into or expand into health and wellness, particularly as Americans get older.

Speaker 16 So that makes sense for them, kind of, you know, own the entire life cycle.

Speaker 16 That makes sense strategically, but there's these massive litigation risks, which is what I think the investors were freaking out about, not just Tylenol, but also some old talc lawsuits that are tied to JJ.

Speaker 16 As you mentioned, Kenview spun out of it a couple of years ago, but it remains on the hook for those as a defendant and lawsuits, not just in the U.S., but also in Europe.

Speaker 14 Yeah.

Speaker 13 How much are those

Speaker 13 lawsuits driving the stock right now? I mean, it's down 35%

Speaker 13 since the spin-off. Is that the real story with KenView? Is that why the stock has suffered so much?

Speaker 16 I think that's a big part of it. You know, look, it's a big price tag, right? If you include debt, it's nearly $50 billion.
So that's a huge swing. And some people reflexively react to that.

Speaker 16 There's always what they call kind of like a, there's kind of like a short arbitrage that sometimes traders play whenever there's a big deal, which can just drive stock down almost no matter what the deal deal is.

Speaker 16 But the multiple is actually pretty reasonable.

Speaker 16 It's a high premium to where Ken View stock was trading, but the multiple is pretty reasonable compared to other deals in the sectors. Yeah, it's the, to me, I think it's the litigation risk, right?

Speaker 16 You know, you've got this weird Tylenol situation here where depending on what RFK and Trump and HHS eventually say about Tylenol,

Speaker 16 you've already got a lawsuit in Texas from the Texas Attorney General.

Speaker 13 You could have hundreds, thousands of lawsuits.

Speaker 16 And even if Kenview slash Kimberly Clark could win every single one of them on the merits and wins every single one of them on the merits, it's still a massive cost and it's a massive time suck.

Speaker 13 Yeah, what do you think is the strategy for Kimberly Clark right now? Why does this make sense?

Speaker 14 Kimberly Clark?

Speaker 16 Yeah, as I said, I think it makes sense because they want to move into health and wellness. And that's what Ken View is, right?

Speaker 16 It's got a huge portfolio of products that are focused, that are health and wellness products, some of which might get divested.

Speaker 16 Ken View and Kimberly Clark kind of talked about that a little bit on the analyst call after this deal was announced, although not with any specifics on what might get divested.

Speaker 16 But look, Americans are getting older. Americans need more health and wellness products.
And so if you're Kimberly Clark, it's kind of a growth area to move into. They use the word tailwinds a lot.

Speaker 16 And also, I think this is a CEO who wants to really put a big acquisitive stamp on his company, which again,

Speaker 16 it's a very...

Speaker 16 Kimberly Clark is the sort of company that will always survive, right? Even in the age of AI, people are still going to need toilet paper.

Speaker 16 That's not going to change, but it's not a high growth sort of business. This could really bulk them up on the top line.

Speaker 13 Final question here. Kimberly Clark and Kenview, they both sell household staples, consumer health.
Are there any antitrust concerns here? Is that something that we should be looking at?

Speaker 16 Traditionally, I would say no. I don't think so.

Speaker 16 You know, there might be one or two very, very niche areas I'm not aware of, you know, that FTC or DOJ might look at. Although, again, Kenview did kind of volunteer today this idea of divestiture.

Speaker 16 So I think clearly that there's no major product lines that are overlapped. So, you know, if the U.S.
government came and said, look, we have antitrust concerns, this is how you could remedy them.

Speaker 16 I think Ken View and Kimberly Clark would be pretty happy to put whatever those assets up for auction. And so far, this FTC and DOJ under Trump have favored divestiture remedies.
Biden's didn't.

Speaker 16 Biden's didn't really like negotiating these deals out. Trump's has.
The wild card in all this, of course, is the Tylenol situation, and namely that Ken View is in Trump's crosshairs.

Speaker 16 And could there be some sort of antitrust action, which doesn't seem to really pass the smell test as a regular antitrust action, but is being informed by other things? Yeah, I think that's possible.

Speaker 16 And each company has basically a billion-dollar plus termination agreement written into this deal with the other one.

Speaker 16 Although, interestingly, there's no litigation carve out in here for Kimberly Clark. In other words, if this deal closes, it assumes all the liabilities or all the litigation risk.

Speaker 16 Every now and then, when you've seen mergers like this with a company, and particularly given the talc lawsuits, they'll kind of carve those out and say to the company being bought, your shareholders actually continue to assume this risk.

Speaker 16 You know, we take this pot of money and it stays over here. Kimberly Clark isn't doing that.
They're taking the whole kit in caboodle.

Speaker 13 Yeah, it's very interesting. I mean, do you think it's possible that

Speaker 13 they looked at what happened with Tylenol and they and because it's fascinating the extent to which this Tylenol situation has been the main driver of the stock price?

Speaker 13 Do you think it's possible that they looked at the Tylenol situation and they said, actually, the stock's at a discount?

Speaker 13 We're not so worried about the litigation. We think we're going to be fine and therefore we're going in.

Speaker 13 In other words, was what happened with Tylenol a big piece, do you think, in the decision process for this acquisition?

Speaker 16 It's possible. What we need to do is we have to wait a little bit to get kind of the history of the merger, which will get filed with the SEC.
We haven't seen it yet.

Speaker 16 The CEO, both CEOs kind of got asked a bit today about the background of the deal and they both hedged on it. So we really don't know.

Speaker 16 I mean, this could be something that's been worked on for the last 10 months, for all we know, before we found out that RFK was going to zero in on Tylenol as a potential autism cause.

Speaker 16 The CEO of Kimberly Clark did talk about having kind of had his eyes on Ken View, I think he said for years, maybe since the spin out got announced by J and J back in 22, 23. But we don't know.

Speaker 16 And what will be very interesting to find out when we do get the history of the merger, because these things get fairly granular, is did it change the price?

Speaker 16 we don't know uh you know and what were those conversations kimberly clark said that they had medical experts and legal experts advising their board about this issue but we don't know how it impacted the actual offer price which is whatever a 50 60 premium on on where can view was trading yeah certainly the elephant in the room that we all need to hear more about okay Dan Primack, business editor at Axios and author of the daily ProRata newsletter.

Speaker 13 Dan, really appreciate your time.

Speaker 14 Thank you very much.

Speaker 13 Amazon struck a seven-year $38 billion deal to supply computing power to none other than OpenAI.

Speaker 13 OpenAI will run its AI models on NVIDIA's GPUs, but in Amazon's data centers, the news sent Amazon stock up 4% to a record close, while NVIDIA ended the day 2% higher.

Speaker 16 So another week.

Speaker 13 another blockbuster deal involving OpenAI. We've seen OpenAI partner up with Microsoft and Oracle and Nvidia and AMD, practically every big tech company, but now they will partner with Amazon.

Speaker 13 And once again, the market is very, very excited about this. Amazon added nearly $100 billion in market cap on news of this deal.
Now, what makes this different from other deals? Well, not much.

Speaker 13 other than the size of it. Compared to the other deals, this one is relatively small.

Speaker 13 Yes, it's still $38 billion and that is a big number, but compare that to AMD, which was more than 200 billion or Oracle, which was 300 billion, it is not quite the same.

Speaker 13 In addition, this is clearly a pivot away from Microsoft, which has historically been OpenAI's largest partner. But also, Microsoft is AWS's largest competitor.

Speaker 13 And as we learned recently, there have been some tensions between OpenAI and Microsoft. They seem to quell those tensions with this new deal they announced last week.

Speaker 13 But still, this is clearly an attempt by OpenAI to wean itself off of Microsoft for cloud computing. Now, perhaps the more interesting question is, what does this mean for Amazon?

Speaker 13 On Monday's episode, we talked about Amazon and we briefly suggested why we are bullish on the stock. And since then, since we talked about Amazon, the stock has risen about 5%.

Speaker 13 So now seems as good a moment as any to unpack exactly why we are bullish on Amazon. And it comes down to a few reasons.
And one of them is indeed AI.

Speaker 13 Despite the fact that Amazon is in fact an AI leader, AWS is the largest compute provider in the world. It's larger than Microsoft Azure.
It's larger than Google Cloud.

Speaker 13 And of course, cloud is essential for AI. Despite that, Amazon has, for whatever reason, been viewed as an AI laggard.

Speaker 13 When you think about AI, you think of OpenAI, you think of NVIDIA, you think of Microsoft.

Speaker 13 Generally speaking, you don't think of Amazon, but you should think of Amazon, not just because of their cloud business, but also because of their chips business.

Speaker 13 Amazon is investing heavily into building its own tranium chips, sales of which grew, as we discussed on Monday, 150%

Speaker 13 last quarter. So our view is that the market will soon view Amazon as an AI winner.
And of course, this open AI news comes out.

Speaker 13 This is the perfect example of that, which is why the stock is ripping right now. Another reason we're bullish, efficiency.

Speaker 13 You might remember Meta's very famous year of efficiency in which costs were cut dramatically and revenue just continued to grow organically and the stock rose more than 100%.

Speaker 13 Well, Amazon is headed for something similar. They're already cutting down their corporate workforce dramatically, as we've discussed.
And they also have plans to cut down the broader workforce too.

Speaker 13 This is not great news if you're an Amazon employee, but if history is any guide, it's great news if you are a shareholder.

Speaker 13 Wall Street loves when companies trim the fat, and Amazon's plan is to mow it down. Now, the final important reason is mean reversion.

Speaker 13 Despite everything that's going for Amazon AWS and its role in the AI story, the tranium chips, even its satellite business, Project Kuiper, Despite all of that, Amazon is trading at a historically low multiple.

Speaker 13 Over the past five years it has traded at 60 times earnings today it trades at 34 times earnings now yes 60 is very high probably too high but there's not a lot of evidence right now to support the notion that amazon's growth potential is historically low that it is historically lower than it should have been several years ago.

Speaker 13 So those are just a few reasons why we are bullish. The stock, of course, immediately ripped right after our episode came out and after we said that we are bullish on Amazon.

Speaker 13 So there is unfortunately a little less room to run than there was say last week or at the beginning of this week. But still at $254, we like the stock in some

Speaker 13 long Amazon.

Speaker 13 Okay, that's it for today. This episode was produced by Claire Miller, edited by Joel Passon and engineered by Benjamin Spencer.
Our associate producer is Alison Weiss.

Speaker 13 Our research team is Dan Shallan, Isabella Kinsel, Kristen O'Donoghue and Mia Silverio. And our technical director is is Drew Burrows.
Thank you for listening to Property Markets from Profitty Media.

Speaker 13 If you like what you heard, give us a follow. I'm Ed Elson.
I will see you tomorrow.

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