Key insights
- The author questions Amazon's recent underperformance relative to other large-cap tech stocks, highlighting the opportunity cost for long-term investors. They suggest that unless one is actively trading, there may be better investment options, especially considering current geopolitical tensions. This implies a slightly bearish sentiment towards AMZN in the short term, but the overall impact on the US market is limited.
Great investors repeatedly choose AMZN as a top pick and have it as a top holding, yet quarter after quarter, it lags numerous top names in performance.
If you bought anytime in the last 2 years besides tariff month, April 2025, it has been a very disappointing performer. and if you bought from July 2020 to March 2022, its been extremely disappointing.
The opportunity cost of staying in it has been massive.
Guess I got lucky getting in at 196 and out at 224 last year.
But if you aren't a trader and wanna invest the old school way, what basis is there (especially at Iran War prices this week) to choose it over any of the other big names? That it won't fall as much in a downturn?