Josh Brown on Amazon: "This is the new Apple"

We talk about market wide rotations. I was making the point the other day that there there have been rotations internally within the Mac seven this year, which is fascinating. Apple falls out of favor all of a sudden the stock market falls in love with Amazon again. Can we pop a chart on AMZN? This is an all time high as we speak. I’m issuing an alert here. If people don’t understand. This is the new Apple. This is the name that now everyone all of a sudden finds themselves chasing and wondering why they don’t. They don’t own enough of. I love that. I don’t want all seven of these stocks going up together and going down together. This is better, It’s healthier, it’s more rational and it’s more meaningful. Why is Amazon doing what it’s doing right now? They have all of the tailwinds. They have the AI platform, they have the e-commerce that’s firing on all cylinders. They have the cost cutting story. They have it all. That’s why this stock is working and others in the Mag 7 aren’t. Now you have a bit of a comeback though in Apple at 18355. Yeah, it’s fine. So it’s had a nice comeback. JP Morgan’s retail trader radar, something they put out within the mag, seven people retail traders were selling NVIDIA, taking some profits, doing a Druckenmiller and buying Apple. So you know, Liz, they’ve looked at the laggards and there’s been, as Josh says, a bit of a rotation within the MAG 7 two. Well, one of the things that, and I don’t really know the answer to this on a specific stock basis, but one of the things that I feel like has started to happen is that the AI trade became kind of a 0 sum game. You’ve got one company that’ll come out and say we’re going to spend a ton to get further ahead on AI. They get maybe punished for the spending and then who’s the beneficiary of that spending? They get rewarded. Instead of what had been happening for the better part of the last 6 to 12 months where you just say the word AI and the stock gets rewarded, now people are being more choosy about what in AI are you spending on. Do you have enough money to spend on that? And if you are spending, who gets that spending? I think investors are getting exhausted with all of the spending and are going to start to reward stocks much more for cost cutting. Can I tack something onto that really quickly? That’s such a great point and one of the things happening with Amazon specifically. I think this month they announced AWS has now crossed above a $100 billion annual run rate business. If it were a stand alone company, it would be S&P 50 in my opinion and that’s where the valuation would put it. That’s buried within Amazon. It’s a lot of the companies overall growth, but understand the spending, the way that AWS has set itself up in AI, bedrock AI. It is LLM agnostic. Bring us whatever AI tools you want. You can run them on a WSI think that that’s the right approach. I don’t agree with the approach of bidding up the company that has the most invested in ChatGPT for example, because ChatGPT may not be the thing that people are talking about in six months. So I like the platform play and I think that’s another reason why we’re seeing Amazon break out to new all time highs 9% month to date. As we said it, it hit a record high.