Readers' Feedback, and A Simpler Amazon Model

Disclosure: I own shares and January 2025 call options of Amazon

There has been a persistent misperception among investors who mostly observe Big Tech from a distance that Big Tech is "consensus" investment. But if you look at realized volatility in some of the Big Tech stocks over the last five years, you can sense a vigorous debate among the market participants.

Never have I sensed this debate more tangibly after posting my thoughts on Amazon over the last week. While my update on Meta (no paywall) and Alphabet  attracted some feedback from readers, my thoughts on Amazon led to a deluge of emails and messages; thankfully, it came from both sides of the table. Thank you for your thoughtful, incisive, constructive, and respectful engagement on Amazon. I have certainly learnt from these interactions; a decentralized feedback from smart, curious readers all over the world is exactly why I love my job so much!  

Before I share some of these feedback and my own thoughts on these comments, a couple of housekeeping notes: a) I will be in Washington, D.C. on next Thursday and Friday (April 6-7); if you're around and would love to meet, reply to this email to set up something, and b) I am currently working on Microsoft Deep Dive which I plan on publishing in late April (think sometime between 20th-25th of April) next week. After Microsoft Deep Dive, I plan on covering a couple of mid-cap companies (<$20 Bn market cap) in May-June this year.

Okay then, let me now get into some of the feedback I received and how/why these interactions led me to change some of my assumptions on Amazon.