Latest / Earn Your Leisure / Cliff Notes: IS AMAZON STILL A GOOD STOCK PICK?
Transcript
- 0:00Speaker 1: Thanks for selling your car to Carvana. Here's your check.
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- 0:30Speaker 6: Let's talk about Amazon. So Amazon buys one medical for
- 0:35Speaker 6: three point nine billion.
- 0:36Speaker 4: We got two story on Amazon.
- 0:37Speaker 6: Yeah, so let's talk about this first one about them
- 0:39Speaker 6: buying one medical for a three point nine billion So
- 0:44Speaker 6: what does that mean? And how has that helped rise
- 0:47Speaker 6: the stock over the over the net? How will that
- 0:49Speaker 6: help rise the stock over the next couple of years?
- 0:51Speaker 6: What does that mean as far as them buying one
- 0:54Speaker 6: medical for three point nine billion dollars?
- 0:56Speaker 7: Yeah, I mean Amazon, you got start no truck go ahead. Now,
- 1:00Speaker 7: I was gonna say, you know, Amazon is still one
- 1:02Speaker 7: of my favorite companies. But we said this for a
- 1:03Speaker 7: long time. How do we add this is the same
- 1:05Speaker 7: thing that we didn't see with Snap when we're are acquisitions,
- 1:08Speaker 7: and so we knew that the number one e commerce
- 1:11Speaker 7: business and probably next year about it early next year
- 1:14Speaker 7: will be Amazon. And what field haven't they really conquered
- 1:17Speaker 7: and that's healthcare?
- 1:18Speaker 2: And so how do you do it? You go get
- 1:20Speaker 2: a healthcare company.
- 1:20Speaker 7: And so it's interesting because the feedback has been a
- 1:23Speaker 7: little shaky, right, well, people are looking at that way.
- 1:26Speaker 7: There has to be something against this, like the privacy here,
- 1:30Speaker 7: right If one medical a lot of people use that
- 1:32Speaker 7: to record their blood pressure, there restling their heart rates
- 1:34Speaker 7: and their lab tests. And now Amazon has access to that,
- 1:38Speaker 7: and so there's a couple of ways they can use it. Obviously,
- 1:40Speaker 7: they can ship you your information or your medicine to
- 1:44Speaker 7: you directly, obviously with Amazon Prime. But what else could
- 1:47Speaker 7: they do with it? Is it an invasion of privacy?
- 1:49Speaker 7: And so obviously there's regulations and government regulations that they
- 1:52Speaker 7: have to.
- 1:53Speaker 2: Abide by to do it.
- 1:53Speaker 7: But people are like, I didn't sign up to one
- 1:58Speaker 7: medical for Amazon to have all this information about me.
- 2:01Speaker 2: So it's an interesting type of situation.
- 2:03Speaker 1: Right now, from a stock and investment perspective, I think
- 2:07Speaker 1: it's a good acquisition. Will medical being a subscription based
- 2:12Speaker 1: which a lot more companies want Apple to do as well.
- 2:14Speaker 1: And now we told you guy last year, Amazon, Google,
- 2:17Speaker 1: and Apple will all go into the healthcare arena very soon.
- 2:21Speaker 1: This is like the first iteration of it. But in
- 2:24Speaker 1: addition to that, I know there's going to be pushed
- 2:26Speaker 1: back initially, but I think it's going to be amazing
- 2:29Speaker 1: to see customers be able to get their medical or
- 2:32Speaker 1: the prescriptions from one place. Fitness stuff Chamuth brought up
- 2:36Speaker 1: how whole foods and the diet can be integrated. And
- 2:39Speaker 1: from an investment standpoint, if you're looking at a store,
- 2:43Speaker 1: you can't like Kroger, Walgreens, Walmart.
- 2:47Speaker 4: We'll talk about that in a second. You can't compete
- 2:49Speaker 4: with them.
- 2:49Speaker 1: Now literally every almost everything with exception of a car,
- 2:53Speaker 1: that you need, you can now get from Amazon. Even
- 2:57Speaker 1: when we buy equipment, like I love BNH, but if
- 2:59Speaker 1: I order for Amazon, it's gonna come a hell of
- 3:01Speaker 1: a lot faster.
- 3:02Speaker 4: So now I can get medical data a lot faster.
- 3:06Speaker 1: And if they bring on the right people on terms
- 3:08Speaker 1: of a board and they need to make a statement
- 3:10Speaker 1: about those privacy issues.
- 3:11Speaker 4: But that I think if they get get a good spokesperson,
- 3:14Speaker 4: they'll be fine.
- 3:16Speaker 1: The blowback I get people are worried about big tech,
- 3:19Speaker 1: but the truth is we have no privacy now anyway
- 3:22Speaker 1: to whatever data you're trying to hide. I know some
- 3:25Speaker 1: dudes in Brooklyn who can get all your information for
- 3:28Speaker 1: two thousand bucks right now, listen, easily easily, right, listens.
- 3:36Speaker 4: A pastor should not have four hundred thousand dollars with your.
- 3:40Speaker 2: Wow wows. I need an investigation on the man and
- 3:43Speaker 2: the chip. I'm just keeping it.
- 3:45Speaker 4: He didn't budge and didn't think about it.
- 3:47Speaker 2: You didn't even I thought, I'm not yo.
- 3:49Speaker 6: He prayed, He did not think about it, didn't.
- 3:52Speaker 4: Move bro and beat the walls next to you.
- 3:54Speaker 6: Didn't think about it?
- 3:55Speaker 2: No man, what song was he on? That's why I
- 3:58Speaker 2: really wouldn't.
- 3:59Speaker 7: Oh, no, yo, Now you know what's interesting. We gotta stop,
- 4:09Speaker 7: We gotta, we gotta stop.
- 4:12Speaker 4: Tomorrow. I look about I.
- 4:15Speaker 7: Looked into one Medical right, and I had no idea. Right,
- 4:17Speaker 7: obviously they purchased a company, but I looked into it.
- 4:19Speaker 7: Do you know what the subscription model is for them?
- 4:21Speaker 2: Not much?
- 4:22Speaker 1: It costs.
- 4:23Speaker 4: How much was it three grade?
- 4:25Speaker 2: It's one nine a month? What one ninety nine a month?
- 4:29Speaker 7: So they track your blood rate, your resting heart rate,
- 4:31Speaker 7: they check your labs results, and they renew your prescriptions.
- 4:34Speaker 7: And so now I think you have all the information. Obviously,
- 4:36Speaker 7: that's how you can get your your medication a lot quicker.
- 4:39Speaker 7: But at one ninety nine a month, if you think
- 4:40Speaker 7: about that, like Amazon Prime is what one.
- 4:44Speaker 2: Was it one something a year?
- 4:46Speaker 7: Like one, you add one ninety nine a month, Let's
- 4:50Speaker 7: say you got a million customers. That's I mean, you're
- 4:52Speaker 7: talking about adding revenue models.
- 4:55Speaker 2: Not a bad acquisition.
- 4:56Speaker 7: But already subscription Yeah, I'm sorry, not not almost a year,
- 5:00Speaker 7: ninety nine a year, I'm sorry.
- 5:01Speaker 6: But then Amazon has already entered the space bar purchasing
- 5:05Speaker 6: pill pack yep, an investor. And so when you start
- 5:09Speaker 6: to see healthcare is the biggest industry in America. So
- 5:14Speaker 6: if you look at the American budget, when we were
- 5:16Speaker 6: teaching in the classroom, we had a lesson plan where
- 5:18Speaker 6: we showed the kids the national budget and healthcare. I
- 5:24Speaker 6: think it was like twenty eight percent something like that.
- 5:27Speaker 6: It was the largest I believe it was the largest amount.
- 5:32Speaker 6: Second with the military, I think. So, you know, there's
- 5:36Speaker 6: nothing bigger than healthcare and it's only going to continue
- 5:40Speaker 6: to be bigger and bigger. So that's why when you
- 5:41Speaker 6: see like Apple Health and Amazon acquiring pill Pack, now
- 5:45Speaker 6: they acquiring other So it's like in order to grow
- 5:47Speaker 6: and you have to be in the healthcare industry. So
- 5:51Speaker 6: you're going to see probably more of these companies. Google,
- 5:54Speaker 6: all of the top companies are going to diversify their
- 5:56Speaker 6: portfolio and get more into healthcare because it's it's literally
- 6:01Speaker 6: the biggest industry in America. Okay, so it only makes sense.
- 6:07Speaker 1: And the veteran the healthcare industry is right for disruption
- 6:11Speaker 1: changes very slowly. So yeah, Google probably jumping jumping the
- 6:15Speaker 1: lake mid next year. And also too, like if you're
- 6:19Speaker 1: going through a recession, if you're in that industry, people
- 6:23Speaker 1: are going to need healthcare services regardless. I mean, look
- 6:26Speaker 1: how much money healthcare is made from COVID. Yeah, that's
- 6:32Speaker 1: just one use stage. And I know people worried about
- 6:35Speaker 1: big tech and big brother. We gave up all rights
- 6:38Speaker 1: for privacy many let's go. So but I'm sure they'll
- 6:44Speaker 1: put out a statement about that about how they'll protect
- 6:47Speaker 1: users rights and not violating hip laws and stuff like that.
- 6:50Speaker 4: Even though some of y'all who work in the hospital
- 6:52Speaker 4: be violating hip laws.
- 6:54Speaker 7: But the Health Insurance Portability and Accountability at HIAA it
- 7:01Speaker 7: limits how company can use protective health information. So that
- 7:05Speaker 7: includes personal identifiable information as well as medical history, lab
- 7:09Speaker 7: tests as well as other health data. So there are
- 7:12Speaker 7: government protections and regulations that are in place. I'm sure
- 7:15Speaker 7: Arizona bye bye, and they'll make a killing inside the
- 7:18Speaker 7: healthcare space.
- 7:19Speaker 6: Speaking of Amazon, so this doc slipped a little bit.
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- 9:45Speaker 2: And after that was in.
- 9:47Speaker 6: Walmart is getting blamed for it because Walmart's profits are
- 9:52Speaker 6: lower because of inflation concern So how is Walmart issues
- 9:57Speaker 6: with inflation? How is that affecting Amazon?
- 10:01Speaker 7: We're talking in e commerce, right, So if you're talking
- 10:04Speaker 7: about inflation, you're talking about people not paying. We're talking
- 10:07Speaker 7: about food prices going up. We're talking about the amount
- 10:10Speaker 7: of fuel prices going up. And it takes fuel to
- 10:13Speaker 7: get to these places to spend the money. And we've
- 10:15Speaker 7: seen that right, and we're seeing people especially like discretionary
- 10:18Speaker 7: things those things are not being bolt at the same break,
- 10:20Speaker 7: so people are buying necessities.
- 10:22Speaker 2: And so when you see a Walmart go down because they.
- 10:27Speaker 7: Change their forecast for their yearly outlook, then it's going
- 10:30Speaker 7: to affect the retail space. Right, they're still the largest. Right,
- 10:32Speaker 7: Amazon will pass it next year, but they're still the largest.
- 10:35Speaker 7: And so if the largest e commerce business takes a hit,
- 10:38Speaker 7: then you're going to see a costco, You're going to
- 10:40Speaker 7: see a target, You're going to see Amazon, and you're
- 10:43Speaker 7: going to see others fall.
- 10:44Speaker 2: Two.
- 10:45Speaker 7: One of the things that they've done trying to combat
- 10:47Speaker 7: inflation is, look, we got.
- 10:48Speaker 2: To put discounts on prices.
- 10:50Speaker 7: But if you put discounts on prices and those things
- 10:52Speaker 7: don't sell, then there's going to be a loss. And
- 10:54Speaker 7: so they've seen that and obviously that guidance is going down.
- 10:58Speaker 2: And so we'll see.
- 10:59Speaker 7: We'll see how Amazon will report on Thursday, so we'll
- 11:02Speaker 7: see how much it's going to affect their stock obviously
- 11:04Speaker 7: affected after hours, but we'll see what their what their
- 11:06Speaker 7: earners looks like.
- 11:09Speaker 1: Yeah, I would argue they're in two different businesses, serve
- 11:12Speaker 1: different client bases, demographics of who they target are dramatically different.
- 11:17Speaker 1: So why why they're similar. They're not the same every
- 11:22Speaker 1: whole asignment. Everyone really quick go to Google and type
- 11:25Speaker 1: in the top ten ways Amazon makes money. Walmart doesn't
- 11:29Speaker 1: have a web services business and got the number one.
- 11:33Speaker 1: So mean, when you got a big kahuna like that,
- 11:35Speaker 1: Like man, there's you know, like their model as a
- 11:39Speaker 1: lost leader model to gain traction and trust. This is
- 11:43Speaker 1: why they're able to navigate into the healthcare field so well,
- 11:46Speaker 1: because if you know, in healthcare, the experience isn't always
- 11:49Speaker 1: the best, and if they can put that Amazon prim
- 11:51Speaker 1: like experience on medical.
- 11:54Speaker 4: Puts a lot of companies on notice.
- 11:55Speaker 1: So wild spending may go down in Walmart. We may
- 12:00Speaker 1: eventually see a slight uptake towards at the end of
- 12:03Speaker 1: the year towards Amazon from like the Christmas rally. I
- 12:06Speaker 1: just think there's two totally different businesses.
- 12:09Speaker 4: Management is better in this era.
- 12:13Speaker 1: They've done an amazing job, But I've been Bezos being
- 12:15Speaker 1: at the at the helm of the company anymore. I
- 12:20Speaker 1: don't think this should have affected their stock price at all,
- 12:22Speaker 1: but I understand why why it may have in the
- 12:25Speaker 1: short term. Amazon is one of my favorites. It's been
- 12:27Speaker 1: a stock club pick forever. Please continue the hold five
- 12:31Speaker 1: or ten years?
- 12:32Speaker 2: Please?
- 12:33Speaker 6: What's your long term outlook for Amazon? Five years, ten
- 12:36Speaker 6: year outlook? It's currently at one hundred, it's currently at
- 12:39Speaker 6: a price, currently at one hundred and twenty one dollars
- 12:41Speaker 6: right now, what do you think potentially it could potentially
- 12:43Speaker 6: get to in five years years?
- 12:46Speaker 4: Are you coming in with a good, spicy question? Two forty.
- 13:00Speaker 2: Five years? Two forty that's that's conservative, easy victory.
- 13:05Speaker 6: Yeah, that's forever for everybody that's that's gonna be disappointed
- 13:10Speaker 6: with two forty. I already know that's double. That's one
- 13:13Speaker 6: hundred percent in five years. Let's say let's say even
- 13:16Speaker 6: if it was let's say hypothetically, even if it was
- 13:18Speaker 6: ten years, that's one hundred percent. But you this kind
- 13:23Speaker 6: of stocks, This is this is the problem with investing.
- 13:26Speaker 6: You're looking for unrealistic returns. You're gonna hurt yourself. You
- 13:30Speaker 6: got you you got spoiled in the last couple of years,
- 13:32Speaker 6: and you want one hundred percent in twelve months, So
- 13:34Speaker 6: you want one hundred percent in five months. Yes, you
- 13:37Speaker 6: can potentially always get that depending on how you invest
- 13:40Speaker 6: but yeah, not always like that in investing. And if
- 13:44Speaker 6: you can double your money as opposed to it, you know,
- 13:50Speaker 6: losing value because of inflation, sitting in a bank account.
- 13:54Speaker 6: That's that's the name of the game. So long term
- 13:56Speaker 6: perspective on on things are very, very critical.
- 14:03Speaker 1: And they got to ask you, do they want a
- 14:04Speaker 1: player that's gonna get a guaranteed bucket or a player
- 14:06Speaker 1: that's gonna be.
- 14:07Speaker 4: Like good for game one and games two through seven.
- 14:10Speaker 4: They're streaky as hell.
- 14:12Speaker 7: Yes, yeah, and it just split. Somebody just asking the
- 14:15Speaker 7: chat isn't gonna come back down? Twenty five days ago
- 14:18Speaker 7: it was one hundred and three dollars like after it split,
- 14:21Speaker 7: I mean one hundred and three. So now we're up
- 14:24Speaker 7: at what one twenty one split before it got up
- 14:32Speaker 7: to Did it get back up to twenty six hundred
- 14:35Speaker 7: or twenty found I know that people even invest in it. Yeah,
- 14:39Speaker 7: it was a thirty seven hundred at its peak and
- 14:41Speaker 7: then obviously with the split, numbers are now up on
- 14:44Speaker 7: the chart.
- 14:44Speaker 2: But it pulled back really like.
- 14:47Speaker 7: Forty, which you know, it's tough to wash in your portfolio,
- 14:51Speaker 7: but when you invested in long term and it you
- 14:53Speaker 7: understand this, this is part of it.
- 14:55Speaker 1: Yeah, hope for the long term, and I know some
- 14:57Speaker 1: of you. I talked to some of you via DM man.
- 15:00Speaker 1: I don't like some of the takes on quit trading.
- 15:02Speaker 1: Everything I'll say is a long term investing. If you
- 15:05Speaker 1: want trading device, come to invest Fest. I don't talk
- 15:09Speaker 1: long term, I mean trade on him for me, but
- 15:11Speaker 1: come to invest Fest. But don't try and turn everything
- 15:14Speaker 1: into a flip, because it's how a lot of people
- 15:16Speaker 1: end up losing money. Hold these for a long period
- 15:19Speaker 1: of time, and technically, I know I haven't talked about
- 15:21Speaker 1: it before, but you should have like a recession account
- 15:24Speaker 1: for the stocks you want to buy during a recession
- 15:26Speaker 1: that you're just going to pile money into and you're
- 15:28Speaker 1: not going to look at for ten years and have
- 15:29Speaker 1: then have your main brokerage account the same way you
- 15:33Speaker 1: should have your swing trading and your trading account. They
- 15:35Speaker 1: trade account separate for one another. You are going to
- 15:38Speaker 1: be upset in ten years when I come back and
- 15:41Speaker 1: be like, hey, I told you so. You don't want
- 15:43Speaker 1: to hear that you were sick and he's supposed to
- 15:46Speaker 1: be humble. That's the problem in changed on the people.
- 15:51Speaker 1: How could you I was worse before. You just didn't
- 15:54Speaker 1: know me, baby boy. It's way worse. Right, So, as
- 16:03Speaker 1: Rashade would say, I'll save this to say, invest in
- 16:06Speaker 1: whole long term and quit trying to take my advice
- 16:09Speaker 1: and flip them to your homeboys as trading advice. I ain't.
- 16:12Speaker 1: That ain't what I signed you up for. But if
- 16:14Speaker 1: you do want trade information, I will have that for you.
- 16:16Speaker 1: At invest Fast August seventh.
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