$50k in THIS stock is all you need to retire
Summary
TLDRThe 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
🚀 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.
📈 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.
🌐 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.
🛡️ 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.
Mindmap
Keywords
💡Investment Opportunity
💡Year-Over-Year Increase
💡Gross Margins
💡Net Income
💡R&D Expenses
💡Earnings Per Share (EPS)
💡Diversification
💡Market Share
💡AI Revolution
💡Price to Earnings (P/E) Ratio
💡Compound Growth
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
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