$50k in THIS stock is all you need to retire

Summary

The script teases Amazon as a hidden gem investment opportunity with its impressive financials, boasting a 99.78% increase in profits year-over-year and a revenue growth that could reach $1 trillion by 2029. Despite challenges like competition and regulation, Amazon's diversified business model and AI ambitions are positioned to drive growth, potentially turning a $50,000 investment into millions over two decades. The presenter invites viewers to a free trading boot camp to learn more about financial strategies.

Takeaways

• 😲 The speaker suggests that Amazon is a 'hidden gem' investment opportunity with the potential to turn a $50,000 investment into a comfortable retirement.
• 📈 Amazon has shown a significant year-over-year increase in profits, with a staggering 99.78% rise, which the speaker believes is undervalued in the current stock price.
• 💰 The company's financials reveal a consistent growth in revenue and efficiency, with a 10% increase in the second quarter of 2024 and a 50% gross margin.
• 📊 Amazon's net income has nearly doubled in a year, and their earnings per share have seen a significant turnaround from 20 cents two years ago to 1.26 in the last quarter.
• 💼 The speaker highlights Amazon's heavy investment in R&D, which exceeds 15 billion a quarter, indicating a commitment to future growth and innovation.
• 🚀 Amazon's cloud computing service, AWS, is a market leader with a 32% market share and is growing year-over-year, positioning the company well in the AI revolution.
• 🔮 Future projections for Amazon are optimistic, with revenue potentially reaching 1 trillion by 2029, if the company can maintain an average annual growth of 10%.
• 🤔 The script acknowledges challenges such as Amazon's size making it harder to maintain agility, rising costs, economic uncertainty, and regulatory scrutiny.
• 🧩 Amazon's diversified business model, including e-commerce, cloud computing, streaming, and advertising, is seen as a strength that could support growth across various sectors.
• 💡 The company's investment in AI and integration of technologies like their 'clae' chatbot into AWS is part of a strategy to create new revenue streams and enhance existing ones.
• 📉 Despite strong financial performance, Amazon's stock is trading at a price-to-earnings ratio lower than its 10-year average, which the speaker interprets as a buying opportunity.

Q & A

What is the central theme of the video script discussing?

The central theme of the video script is the potential of Amazon as an investment opportunity, highlighting its financial performance, growth, challenges, and future projections.

What significant financial achievement of Amazon is mentioned in the script?

The script mentions Amazon's staggering 99.78% year-over-year increase in profits as a significant financial achievement.

What is the '2-hour trading boot camp' mentioned in the script, and how can one participate?

The '2-hour trading boot camp' is an educational event for beginners that the speaker is promoting. To participate, one needs to visit Felixfriends.org and follow the boot camp link provided in the description.

What does the speaker claim about Amazon's stock price in relation to its true potential?

The speaker claims that Amazon's stock price does not fully reflect its true potential, suggesting it could be a hidden gem for investors.

What is the potential impact of global economic uncertainty on Amazon's retail side?

The potential impact of global economic uncertainty on Amazon's retail side is that consumer spending could decrease, which might affect Amazon's retail business negatively.

What is the speaker's view on Amazon's AI initiatives and their integration into AWS?

The speaker believes that Amazon's AI initiatives, including their investment in anthropic and the integration of their AI platform, are positioning the company to stay ahead in the AI revolution and create new revenue streams.

What is the price-to-earnings (P/E) ratio of Amazon mentioned in the script, and what does it suggest about the stock's valuation?

The script mentions a P/E ratio of 37 for Amazon, which is less than half its 10-year average, suggesting that the stock might be undervalued.

What is the potential long-term growth scenario for Amazon's stock price if certain analyst projections are met?

If Amazon achieves the analyst projections of 20% annual profit per share growth over the next decade, a $50,000 investment could potentially grow to over $300,000 in 10 years, and over $2 million in 20 years.

What risks are associated with investing in Amazon, as discussed in the script?

The risks associated with investing in Amazon include the challenges of maintaining high growth rates due to its size, competition in various markets, regulatory scrutiny, economic uncertainty, and the risk of over-concentration by investing too heavily in a single stock.

What is the speaker's advice on investment strategy in relation to Amazon's potential?

The speaker advises maintaining a diversified portfolio and not putting all eggs in one basket, even when the investment opportunity seems exciting, to mitigate unnecessary risks.

What is the role of the speaker's golden retriever, Winston, in the script?

Winston, the golden retriever, is used metaphorically to introduce the concept of a 'golden opportunity' and to add a personal, light-hearted touch to the speaker's presentation.

Outlines

00:00

🚀 Introduction to Amazon's Investment Potential

The speaker begins by drawing a parallel between a missed investment opportunity in e-commerce giants of the past and a current opportunity with Amazon. They hint at a significant increase in Amazon's profits and invite viewers to a free trading boot camp for beginners. The speaker then transitions into discussing Amazon's financial performance, highlighting a 99.78% year-over-year increase in profits and a 10% increase in revenue to $147 billion in Q2 of 2024. The company's efficiency is also noted, with gross margins climbing to 50%. The speaker emphasizes that despite Amazon's size, it continues to show exceptional growth and financial strength.

05:01

📈 Amazon's Financial Performance and Challenges

This section delves deeper into Amazon's financial performance, with a focus on its net income, which saw a staggering 99% increase. The speaker also discusses Amazon's investment in research and development, exceeding $15 billion per quarter. Earnings per share have also seen a significant turnaround, from 20 cents two years prior to $1.26 in the last quarter. However, the speaker introduces potential challenges for Amazon, including its massive scale making it harder to maintain agility, rising operational costs, and the impact of economic uncertainty on consumer spending. The speaker also mentions the competitive landscape in cloud services, with AWS facing competition from Microsoft and Google.

10:03

🌐 Amazon's Diversified Business Model and Future Projections

The speaker argues that Amazon's diversified business model, which includes e-commerce, cloud services, and more, acts as a fortress against market volatility. They highlight Amazon's market leadership in cloud computing with a 32% market share and its strategic investment in AI, exemplified by its $4 billion investment in Anthropic. The speaker suggests that Amazon's integration of AI into its cloud platform could create new revenue streams and enhance existing ones. Despite the challenges, the speaker is optimistic about Amazon's future, suggesting that its stock price is undervalued compared to its potential, and provides a financial projection where a $50,000 investment could grow significantly over the next decade.

15:04

🛡️ Addressing Risks and the Importance of Diversification

In the final paragraph, the speaker addresses the risks associated with investing in Amazon, including the challenges of maintaining high growth rates as the company scales, competition in the cloud computing sector, regulatory scrutiny, and economic uncertainties. They emphasize the importance of not over-concentrating investments in a single stock, even one as promising as Amazon. The speaker concludes by reflecting on the potential of Amazon as an investment, the importance of patience and understanding the risks, and invites viewers to join a free boot camp for financial education, sharing their own trading successes and strategies.

Keywords

💡Investment Opportunity

An investment opportunity refers to a situation where an investor can potentially gain significant returns on their investment. In the video, the speaker discusses the possibility of investing in Amazon as a hidden gem, suggesting that it could provide substantial returns, turning an initial investment of $50,000 into a comfortable retirement fund.

💡Year-Over-Year Increase

This term is used to describe the percentage increase in a financial metric, such as profits or revenue, from one year to the next. The video highlights Amazon's impressive 99.78% year-over-year increase in profits, indicating strong financial performance and growth.

💡Gross Margins

Gross margins represent the proportion of each dollar of revenue that a company retains as gross profit. The video mentions that Amazon's gross margins have climbed to an impressive 50%, suggesting that the company is becoming more efficient in retaining earnings from its sales.

💡Net Income

Net income, also known as profit, is the money that remains after all expenses have been deducted from the total revenue. The video emphasizes Amazon's net income of $135 billion, highlighting a 99% increase from the same quarter the previous year, showcasing the company's profitability.

💡R&D Expenses

R&D expenses refer to the funds a company spends on research and development. The video points out that Amazon invests heavily in the future with R&D expenses exceeding $15 billion a quarter, indicating the company's commitment to innovation and growth.

💡Earnings Per Share (EPS)

Earnings per share is a financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock. The video discusses Amazon's EPS growth from 20 cents two years ago to $1.26, indicating a significant turnaround in the company's financial performance.

💡Diversification

Diversification in the context of business means spreading activities across various sectors to reduce risk and increase potential for growth. The video describes Amazon's diversification as a strength, as it operates in e-commerce, cloud computing, and other areas, providing multiple revenue streams.

💡Market Share

Market share is the portion of the total available market that a company controls. The video notes that Amazon's cloud computing service, AWS, holds a 32% market share, demonstrating its leadership in the cloud computing industry.

💡AI Revolution

The AI Revolution refers to the transformative impact of artificial intelligence technologies on various industries. The video suggests that Amazon is positioning itself as a major player in this revolution, with significant investments in AI startups and integration of AI technologies into its services.

💡Price to Earnings (P/E) Ratio

The price-to-earnings ratio is a valuation ratio of a company's current share price compared to its per-share earnings. The video mentions that Amazon's stock is trading at a P/E ratio of 37, which is less than half its 10-year average, suggesting that the stock might be undervalued relative to its earnings.

💡Compound Growth

Compound growth is the increase in the value of an investment over time, where earnings are reinvested to generate additional earnings. The video uses the analogy of a snowball rolling down a hill to illustrate how compound growth can lead to significant increases in the value of an investment over time, such as turning a $50,000 investment into over $2 million.

Highlights

Imagine investing in e-commerce giants like Amazon in 1997 for just $1,000, potentially leading to millions in returns today.

A 2-hour trading boot camp for beginners is being offered for free, sharing insights on how they achieved an 80% increase.

Amazon has shown a 99.78% year-over-year increase in profits, yet its stock price does not fully reflect this growth.

Amazon's revenue in the second quarter of 2024 skyrocketed to $147 billion, a 10% increase from the same period last year.

Amazon's gross margins have steadily climbed to an impressive 50%, indicating increased efficiency in their operations.

Amazon's net income has seen a staggering 99% increase from the same quarter last year, reaching $135 billion.

Amazon is investing heavily in the future with R&D expenses exceeding $15 billion a quarter.

Earnings per share for Amazon have seen a significant turnaround, increasing from 20 cents two years ago to $1.26.

Amazon's diverse business model, including e-commerce and cloud services, provides multiple revenue streams.

AWS, Amazon's cloud computing service, remains the market leader with a 32% market share and growing revenue.

Amazon's investment in AI startup Anthropic and integration of their AI technology into cloud computing shows their ambition in AI.

Despite its strengths, Amazon's stock is trading at a price-to-earnings ratio of 37, less than half its 10-year average.

Analysts project Amazon's revenue could reach $1 trillion by 2029, assuming an average annual growth of 10%.

Investing $50,000 in Amazon today, with the projected 20% annual EPS growth, could result in over $300,000 in 10 years.

The importance of maintaining a diversified portfolio to avoid unnecessary risk, even when investing in high-potential companies like Amazon.

Amazon's ability to navigate regulatory scrutiny and competitive markets due to its size and influence.

The potential for Amazon to become a trillion-dollar revenue business by continuously investing in new ideas and technologies.

Transcripts

have you ever kicked yourself for

missing out on a golden investment

opportunity imagine if you could turn

back time and grab shares of certain

e-commerce Giants for just ,000 in

1997 you'd be sitting on Millions today

well I've got news for you lightning

might just strike twice Winston my

trusty golden retriever has sniffed out

an opportunity that could turn

$50,000 into a very comfortable

retirement but before reveal the Hidden

Gem let me share something even more

exciting with you we're running for

beginners a

2hour trading boot cap this coming week

and we'll share with you how we're up

80% and the best thing is it's free all

you got to do is go to Felix friends.org

bootcamp links Down Below in the

description grab yourself a free uh spot

and you might just get lucky twice today

now let's get back to our potential gold

mine here this Tech Giant

has consistently beaten analysts on Wall

Street into a bloody mess with a

staggering

99.78% year-over-year increase in

profits yet its stock price doesn't

really reflect its true potential in my

humble opinion why well that's what

we're about to uncover so buckle up as

we dive into the financial challenges

and hidden strengths of this rather

misunderstood giant by the end of this

video you'll understand why 50k invested

in this stock could be your ticket to a

worry-free

retirement and the company I'm teasing

is drum roll yes it is yeah that one but

no it is Amazon all right uh let's dive

into the Treasure Trove of Amazon's

financials because there's some

extraordinary numbers in there their

most recent quarter second quarter of

2024 their revenue Skyrock it to 147

billion 10% increase from the same

quarter last year to put that into

perspective let's that's adding the

entire GDP of Hungary to their books in

just one year maybe you're not familiar

with Hungary but it is a country in

Europe but there is more Amazon's not

just growing it's becoming more

efficient their gross margins have been

on a steady climb up reaching an

impressive

50% in layman's terms that means for

every dollar amazon earns they're

keeping 50 cents instead of just 43

cents a few years ago it might not sound

like much but but when we're talking

billions it adds up faster and my golden

retriever can put on weight very easy

for Golden Retrievers to put on weight

isn't it poor thing now let's talk about

the bottom line here because that's

ultimately what it's all about Amazon's

net income as an fancy word for profit

just the money they get to keep after

all all expenses just hit 135 billion

and that is a jawdropping

99% increase from the same quarter last

year yeah you heard that right they

nearly doubled their profits in just one

year but Amazon isn't just sort of

resting they're investing heavily in the

future with R&D expenses exceeding 15

billion a quarter that's more than some

countries spent on their entire

education budget but let's not for get

about earnings per share which is really

what ultimately matters to us

shareholders earnings per share were

1.26 last quarter a126 doesn't sound

impressive but two years ago that was 20

cents so we got a serious talk

turnaround here so what does all this

financial jargon really mean for you the

potential investor it means Amazon isn't

just a tech giant it's a financial

Juggernaut that's picking up speed very

impressively imagine a cargo ship the

size of a small City now imagine this

cargo ship is not only moving but it's

accelerating that's Amazon so despite

its enormous size it's growing revenues

at Double Digit rates expanding its

profit margins and nearly doubling its

profits year-over-year and that kind of

growth for a company already worth over

a trillion dollars is pretty

exceptional but there are challenges so

in our next segment I'm going to explore

the headwinds here because these

obstacles might explain why the stock

price doesn't fully reflect the Stellar

performance quite yet so stick around

first app we've got the elephant in the

room or should I say the elephant in the

warehouse Amazon's massive scale once

its greatest strength is now presenting

unique challenges as the company grows

it's becoming increasingly difficult to

maintain the agility that fueled its

early success it's like trying to steal

a cargo ship through a Nar can now

that's Amazon trying to Pivot in today's

fast changing Market the bigger you are

the harder it is to make quick turns and

that leads to our Second Challenge

Rising costs Amazon's operating expenses

have been climbing faster than a

squirrel app at tree with Winston

chasing after it and these expenses hit

133 billion in the last quarter that's a

lot isn't it a lot of squirrels but

unlike some of its Tech

Amazon's business model is a mixed bag

it's not just cloud services or online

shopping it's both and more and this

diversity while it's it strength it also

exposes Amazon to a wider range of

headwinds So speaking of headwinds let's

talk about the global elephant in the

room economic uncertainty inflation

concerns are still there maybe we get a

recession the consumer spending could

take a hit and yes the Amazon retail

side feels the pinch when the consumer

tightens their belt but what about AWS

the Golden Goose yes and no and AWS the

cloud business remains a bright spot now

there is competition of course from

Microsoft and Google and other buggers

out there they're nipping at their heels

but in the AI arms race that is heating

up faster and faster then again you know

Winston chasing after a ball I think AWS

is pretty well positioned I actually

just created an aw account myself and

then yeah the bigger you get regulation

becomes more of an issue right market

dominance investigations and all that

kind of stuff so you might be thinking

with all these challenges how can Amazon

possibly be a Hidden Gem how can I

possibly we retire of this well that's

exactly what we're here to unpack so

let's uncover and unpack the thing that

we're about to unpack let's look at

their

ecosystem some see it as a weakness I

see it as

Fortress it's not not just e-commerce or

a cloud service provider it is both and

so much more the diversification means

Amazon has multiple revenue streams each

supporting each other when one sector

faces headwinds another one can pick up

the slack it's like having a portfolio

of businesses all under one room roof

rather and then let's zoom out a little

bit or maybe even zoom in a little bit

on AWS Amazon's cloud computing out

despite the increased competition AWS

Remains the market leader with a 32%

market share and it's growing faster

than you can say cloud computing the

revenue grew 12% year-over-year to

reaching 22 billion in the last

quarter and Amazon is positioning itself

as a major player in the AI Revolution

their 4 billion investment in anthropic

an AI startup shows they're serious

about staying ahead of the curve in my

experience their llm they're sort of

chat GPT competitor which is called clae

is actually far better than chat GPT

just not talked about that much and

guess what they integrated into their

cloud computing platform so this move

isn't about this move into AI isn't just

about staying relevant it's about

creating a new Revenue stream and

enhancing existing ones imagine AI

powered recommendations on Amazon or AI

optimistic logistics for faster cheaper

deliveries possibilities are endless

and let's talk about valuations here

despite all of these strengths Amazon

stock is trading at a price toh flow

ratio of 37 less than half its 10year

average in simpler terms it's like

finding a designer jacket or something

at a thrift store price so why is this

happening well the market seems to be

overlooking Amazon's potential in the AI

around while other Tech Giants have seen

their stock prices so on AI hype

Amazon's AI in initiatives are flying

under the radar in other words Amazon is

already reaping rewards from these AI

driven initiatives they're not just

talking about potential anymore they're

actually showing results so what we have

here is a company with a diverse

resilient business model A leadership in

cloud computing serious AI Ambitions in

a stock price that doesn't reflect its

true potential if that isn't a Hidden

Gem I don't know what is so let's pop

into a financial time machine for a

moment and take a peek at what the

future might look like for Amazon let's

start with where we are right now in

2023 Amazon reported 534 billion in

Revenue that's more than the GDP of

Sweden I don't know I came up with

Sweden but it's true analysts that

projecting by 2029 Amazon's revenue

could reach a staggering $1

trillion $1 trillion Yes you heard that

right it's a t trillion now how on Earth

is that possible you might think well

let me break it down for you to reach

this astronomical figure Amazon would

need to grow its revenue on average by

10% a year and that well isn't really

all that hard is it they've consistently

outpaced Market expectations much like

you know how Winston consistently

outperforms uh squirrels and he doesn't

actually he doesn't quite get to them

thankfully for the squirrels he does

give them a bit of a fright there but

there is a bit more to this analysts

aren't just bullish about Amazon Revenue

they're also projecting earnings per

share growth so profits per share growth

of at least 20% per year all the way

through to 2029 now why are analysts so

optimistic well it isn't just wish

wishful thinking there are several

factors that play here firstly Amazon's

Diversified business model from

e-commerce to cloud computing to

streaming to advertising and everything

else these sectors grow and therefore

Amazon overall grows and then secondly

the continued growth of e-commerce yeah

despite already being a massive Market

online shopping is still in an upward

trajectory especially in emerging

markets and then thirdly we got the

explosive growth of cloud computing and

AI Technologies now of course these are

projections they're not guarantees but

generally the analysts have actually

been wrong as in they predicted too low

numbers because you see Amazon is a

unique business it's almost like a

little founder Le startup they're always

looking a few years ahead and they

spending heavily on that new business

and the market doesn't really like it

because they're not handing the profits

back to shareholders they're not paying

dividends they're not doing BuyBacks

they're doing something much much

smarter they're becoming a trillion

dollar Revenue business so what does

this mean for you well let's explore

exactly that let's break down what these

projections would mean for the stock

price let's put on our investor hat if

you invested $50,000 in Amazon stock

today and I'm not telling you to do that

obviously right don't be a Mapp it do

your own research and diversify and so

on but if you put $50,000 into Amazon

stock today and what if those analyst

projections of 20% annual profit per

share growth come to fruition if Amazon

achieves that 20% annual EPS growth over

the next decade and if the stock price

follows suit by going up 20% per year

which would be a reasonable expectation

that $50,000 investment could grow to Y

$300,000

Plus in just 10 years and if we extend

that timeline to 20 years then well

you're going to cross the $2 million

Mark now I know you're thinking Phoenix

that just sounds too good to be true and

it's good to be skeptical but let's

break down how this could potentially

happen the key here is compound growth

it's like a snowball rolling down a hill

getting bigger and bigger as it goes

each year your investment doesn't just

grow by 20% of the original amount it

grows by 20% of an increasingly larger

snowball however and this is of course

crucial all investing carries risk so

stock prices don't always follow EPS

growth perfectly Market downturns

company specific issues and so on could

impact returns that being said this is a

scenario that illustrates the potential

power of long-term investing in high

quality companies it's not about getting

rich quick it's about patiently allowing

your Investments to grow over time much

like how I've patiently trained Winston

to finally stop digging up my garden

he's fairly good at that he does quite

enjoy lying in Cold Soil though but what

does it really all mean for you well

that's what we're going to explore in

our final segment here we'll discuss how

to approach this opportunity responsibly

and what steps you might consider taking

next first and foremost let's address

again the elephant in the room Amazon

size while being a trillion dollar

company has its perks it also presents

some challenges the law of large numbers

suggest that as a company grows

maintaining high growth rates becomes

increasingly difficult but that law also

assumes that you're going to keep doing

the same thing again and again and again

and yes you will eventually absorb so

much of the market it becomes harder to

grow Amazon though started selling books

right and they become an e-commerce

company then they started cloud

computing then they started advertising

advertising revenue is 80 billion a year

it's bigger than YouTube now they've got

robots they got Ai and undoubtedly

invest and come up with new ideas I have

some confidence here into the

amazonians but they do operate in highly

competitive markets there are facing

competitions there are established

players and Nimble startups in the cloud

computing World we've got Microsoft in

Google snapping at their heel a bit like

Winston at the dog park and Regulatory

scrutiny comes with big size as Amazon's

influence grows so does the attention of

regulators but also so it goes the other

way around as you are very large as

we've seen with companies like Microsoft

you are able to navigate to these Waters

through I don't know political donations

perhaps you know entirely legal and

ethical and all of that sort of stuff

and of course nobody knows what the

economy is going to do over the next 10

or 20 years so you have to factor all of

this stuff in and lastly I think this is

the main one here there is a risk of

over concentration if Amazon's potential

ex is exciting it's crucial to maintain

a somewhat Diversified portfolio putting

all your eggs in one basket even if it's

an Amazon siiz basket can expose you to

unnecessary risk it's a bit like feeding

Winston nothing but his favorite treats

tempting but probably not the healthiest

approach so I wanted to round off with a

little bit of Doom and Gloom because

these risks are important of making an

informed investment decision rather than

just sending you off on this you know to

the Moon type thing so as we wrap up our

Deep dive into Amazon's potential here

as an investment let's take a moment to

reflect on our journey we've explored

Amazon's impressive Financial Health

100% year-over-year increase in profits

double digit Revenue growth we looked at

some the some of the challenges it faces

from competition to regulation we looked

at the future projections of over a

trillion dollar in Revenue by 2029 and

and the possibility of turning $50,000

into $2 million plus as a nice Nest Egg

but remember investing is much like

training Winston it requires patience

consistency cuddles treats and

understanding the risks involved when a

golden betriver comes for those treats

those teeth are thankfully not very

sharp but the stock market in all

seriousness is amazing you have access

to the greatest stock market in the

history of the world so don't put all

your eggs in one basket if you are

somebody who's a little bit more

impatient and you want to potentially

make your money grow FAS and I do that

through trading a couple hours a week I

never promise you any returns but I

promise to show you what I do pull back

the curtain so you can see exactly what

our rules are what our systems are how

what our automations look like and

that's how we've turned a $30,000

portfolio into a $54,000 portfolio so

far this year that's an 80% gain so come

and join our free boot camp it is for

beginners no knowledge is required it's

completely free of charge and it's our

way of spreading Financial education

which is really what this is all about I

thank you for joining and until next

time this is Felix signing off