Amazon Making Big Bets on AI; Cathie Wood and Warren Buffett Own Stock But Diverge on Exposure
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Cathie Wood and Warren Buffett both own shares of Amazon stock, which is making advances in AI. However, it's a very small % of their portfolios.
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Amazon recently invested in an AI startup called Anthropic, which could boost its cloud computing growth. Its new Bedrock service is also gaining traction.
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Amazon stock looks undervalued compared to other tech giants based on its price-sales ratio of just 2.9, inline with its 10-year average despite massive growth.
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Amazon's moves into AI could lead to reaccelerated growth for AWS and higher revenues and cash flows. Investors may be underappreciating this potential.
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Dollar-cost averaging into a long-term Amazon position looks attractive at current valuations according to the author.