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Well, we have some breaking news
Bill Ackman that bought in a 

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billion dollars worth of Netflix
just three months ago, sold 

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entirely out of the company 
dumped his entire his entire 

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position in it. 
Only three months after buying 

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it and he did it after a 37 
percent loss. 

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So in this episode, we're going 
to be going over his letter of 

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why he explains the reasons that
he sold the company. 

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We're also going to be talking 
about my holding a Netflix, I 

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haven't sold yet and I want to 
share my thoughts on if I'm 

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going to sell or what my plans 
are. 

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Going forward. 
And then we also have another 

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subject I want to dive into in 
this episode, which is Amazon's 

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upcoming earnings. 
Next Thursday, Amazon is by far 

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my biggest position. 
We have their earnings just one 

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week away and I have some 
thoughts on what to expect for 

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their upcoming earnings. 
So we have a lot to get into. 

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Let's go ahead and Jump Right 
In. 

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All right, so first of all, 
let's go ahead and look at the 

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letter here, der Pershing Square
investors. 

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Today, we sold our investment in
Netflix, so they sold the entire

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thing, which we purchased 
earlier this year, the lost on 

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our investment reduced Pershing 
Square funds here today Returns 

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by four percentage points so he 
had roughly the same position 

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size. 
I did. 

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I lost maybe four and a half 
percentage points based on just 

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that one day that 36 down, 36 
percent down move. 

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He says reflecting this loss. 
As of today's close Pershing 

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Square funds are down 
approximately two percent 

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year-to-date. 
So people that are are kind of 

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dunking on Bill Ackman. 
Like he's a bad investor because

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he bought it and then sold it 
quickly. 

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Realize that he's down two 
percent year-to-date. 

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So take a look at your 
portfolio, your today. 

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Day, see how you're doing and 
see if it's better than 2%. 

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Anyways, he goes on and says, 
while we have high regard for 

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Netflix's management and the 
remarkable company, they have 

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built in light of the enormous. 
Operating leverage inherent in 

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the company's business model 
changes. 

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In the company's future, 
subscriber growth can have an 

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outsized impact on our estimate 
of its intrinsic value in our 

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original analysis. 
We viewed this operating 

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leverage favorably, due to our 
long-term growth, expectations 

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for the company yesterday in 
response to Continue 

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disappointing customer 
subscriber growth. 

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Netflix announced it would 
modify its subscription-only 

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model to be more aggressive in 
going after non-paying customers

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and to a corporate advertising 
an approach the Management's 

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estimates would take one to two 
years to implement. 

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While we believe these business 
model changes are sensible. 

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It is extremely difficult to 
predict their impact. 

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On the company's long-term 
subscriber growth future 

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revenues, operating margins and 
capital intensity. 

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Now, he goes on saying his 
requirements for any Investment.

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We require a high degree of 
predictability in the businesses

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in which we invest due to the 
highly concentrated nature of 

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our portfolio. 
While Netflix's business is 

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fundamentally simple to 
understand, in light of recent 

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events, we have lost confidence 
in our ability to predict the 

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company's future prospects with 
a sufficient degree of 

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certainty. 
Based on Management's track 

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record, we would not be 
surprised to see Netflix 

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continue to be a highly 
successful company and an 

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excellent investment from its 
current market value. 

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That said, we believe the 
dispersion of outcomes has 

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widened to a sufficiently large 
extent, that it is challenging 

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for the company to meet the 
requirements for a core holding 

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one of our learnings from the 
past mistakes is to act 

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promptly. 
When we discover new information

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about an investment that is 
inconsistent with our original 

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thesis, this is why we did. 
So, here we are in the midst of 

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an opportunity, Rich environment
for Pershing Square due to the 

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dramatic shifts in the Federal 
Reserve policy, a highly 

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inflationary environment, 
geopolitical uncertainty and The

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resulting High degree of 
scrutiny price volatility, we 

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therefore expect to find good 
use for the Netflix proceeds. 

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So when I read this letter, I 
think as a fancy way 

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well-worded, way of Bill Ackman,
just saying look this last 

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earnings report was shocking, we
didn't expect it. 

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This is way different than our 
normal investment thesis and 

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we're just taking our losses and
move on. 

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And moving on to something we 
expect, that's basically what I 

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see him saying. 
We just did not expect this 

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outcomes so I don't blame Bill 
Ackman for selling. 

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In fact, I think it fits with 
his investing framework pretty 

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well. 
The question is what do I do in 

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this situation? 
I am down twenty thousand eight 

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hundred dollars in his portfolio
and the huge majority of these 

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losses 16400 is from Netflix 
alone. 

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The big majority of my overall 
losses in this entire portfolios

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from one company. 
So Netflix so far has been a 

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disastrous investment. 
It's throw me into the red and 

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every single time we climb back 
to the green and I start making 

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progress actually making gains. 
Netflix has another quarter 

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which just knocked me right back
into the Ed. 

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So this has been more than a 
frustrating investment, it's 

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been a terrible investment, but 
I want to go over what I think, 

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I did wrong and what I plan on 
doing now. 

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So let's go ahead and first talk
about what I did wrong. 

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A lot of people go right away to
blaming valuation, they say, the

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reason that you're in the red on
Netflix is because it was 

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overvalued, it was a valuation 
problem, you don't run 

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discounted. 
Cash flow analysis, right. 

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A lot of people say that. 
First of all, that's not true. 

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I have a Discord where I discuss
valuations all the time with 

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lots of different investors. 
We go through different 

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scenarios. 
Ariel's and discounted cash flow

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analysis. 
And when I put this much money 

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into any investment, I do a lot 
of valuation work on it, so this

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wasn't a lack of effort and 
valuation. 

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And I think that simply saying 
the company was overvalued when 

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you were buying it. 
I think that understates the 

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real problems here, an important
component of valuation is your 

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expected growth of the company, 
that is one really important 

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ingredient or or factor the 
factor into the valuation. 

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And in that growth, there's two 
important components There's how

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quickly you think the company 
will grow and for how long do 

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you think it will grow those two
variables alone? 

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Determine a huge part of the 
terminal value or the intrinsic 

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value of a company. 
So if you have a company that 

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you believe will grow at a very 
brisk pace and you think it will

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grow for a very long period of 
time 10 plus years. 

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That is a company that you're 
willing to pay more for the one 

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that you think is just going to 
stay flat and not really grow 

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but it's just going to kind of 
stay where it is. 

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That one would deserve a lesser 
multiple and a lower valuation. 

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So the growth In the expected, 
growth of the company is a huge 

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component of the price that you 
should be paying for the 

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company. 
My assumptions with Netflix is 

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that right now today it would 
have over 250 million 

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subscribers. 
That was my growth assumption. 

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They're struggling to get past 
220 million, they got 2222 and 

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they're expecting to shrink. 
So it's kind of part of my 

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valuation. 
The growth assessment is part of

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my valuation, but more 
specifically the big thing that 

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I got wrong with my analysis on 
Netflix is the expected. 

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A growth rate of the company 
they're running into resistance 

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with their growth rate far 
quicker than I expected. 

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I expected at a minimum that 
they would be able to get to 350

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million subscribers before, 
seeing a lot of resistance in 

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their growth. 
And here we are at 220 million 

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and they're seeing a lot of 
resistance. 

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So again, you can see this was a
valuation problem while that's 

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technically true within the 
scope of valuation is the growth

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assumptions and that's 
specifically the part that I got

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wrong. 
If Netflix continued to Row, 

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according to my valuation 
analysis. 

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What I thought it would continue
to grow at. 

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Then I'd be still fine paying 
the price. 

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I originally paid if they grew 
to 250 million subscribers and 

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they're adding more subscribers 
every single quarter, I don't 

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think we'd be seeing the massive
sell-off set. 

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We're seeing I think the price I
paid for it would have been 

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completely fine. 
So of course, we're Netflix has 

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run into trouble. 
Is their growth has completely 

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stopped. 
Its came to a grinding halt 

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announced the question of 
whether or not they can continue

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to grow at all. 
That's the question investors 

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face. 
So that requires a pletely 

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different valuation. 
And I think the multiple 

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contraction associated with 
that, the rewriting of the 

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company makes sense. 
I think it's deserved. 

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I got the analysis wrong. 
I thought the company would grow

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with ease. 
It's not growing with these. 

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It's running into a lot of 
trouble, so it deserves to be 

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rated at a lower valuation. 
So the question for me is what 

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do I do at this point? 
Do I do it? 

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Bill Ackman, didn't just dump 
the holding a move on or do I 

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hang onto it and by the way, 
before you leave your comment of

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this is why you don't follow 
Bill Ackman into a holding. 

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I did not follow Bill Ackman 
into buying. 

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Flex. 
I've held this company long 

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before he was ever involved in 
it. 

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So before you leave that 
comment, I didn't buy the 

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company because Bill Ackman 
bought it. 

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Now, the question remains, what 
do I do with my remainder of 

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Netflix? 
I currently have eleven thousand

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two hundred dollars of value and
I haven't sold a single share. 

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I've not sold out any part of 
this company. 

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I've decided that I'm going to 
hang on to it. 

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I just want to see a full Year's
performance. 

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And if this is a consistent 
trend of declining subscribers 

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for the foreseeable future, or 
if they can reverse this and 

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start to gain subscribers 
towards the end of the year, 

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which is usually their best 
months. 

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Because right now, Netflix has 
traded down so much, another 36 

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percent in one day. 
And then another 3%, that there 

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is a ton of pessimism built into
this stock. 

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It's been completely re-rated, 
it's down to a 24 PE ratio so 

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all the growth investors have 
dumped out of this stock they've

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moved on and now it's being 
priced with much lower 

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expectations. 
The expectations are very low 

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for Netflix as of right now so I
could continue to lose money 

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with Netflix. 
They could Continue to 

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disappoint, even below the 
current low expectations, but I 

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think the expectations are very 
low, I think pessimism is very 

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high. 
People are becoming very bearish

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on streaming and Netflix in 
general. 

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So I think the opportunity for 
them to actually outperformed, 

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expectations are high right now 
than they were a year ago, 

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certainly much higher. 
So I'm going to hold onto 

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Netflix for at least the next 
quarter, I'm going to be looking

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at next quarter and seeing if 
they guide down again throughout

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the rest of the year and how 
many subscribers they really 

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lose their Rejecting a loss of 2
million subscribers, and if they

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lose more than 2 million, I'm 
dumping the stock. 

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So that will be the final straw.
I'll sell the company at that 

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point at a big loss, but I just 
want to see if they're being 

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very conservative, if they 
actually beat the expectations 

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of the - 2 million subscribers 
and what they guide for the 

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remainder of the year, because 
that's usually a strong quarter 

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for them. 
So I think that next quarter 

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will be very revealing of 
Netflix and what their future 

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path is and I just don't feel 
comfortable dumping out of the 

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story as of right now. 
So, that's what I'm choosing to 

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do. 
But I understand if people, Hold

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00:10:00,000 --> 00:10:01,300
it. 
I understand if people bought in

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right now, everyone has 
different views and expectations

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on Netflix. 
But that's what I'm doing. 

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I'm going to be holding onto 
Netflix for one more quarter and

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seeing how this shakes out for 
the rest of the are now. 

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Moving on, I want to talk about 
Amazon. 

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This is by far. 
My biggest holding, I have 41.8%

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of my portfolio into Amazon. 
I feel very confident in this 

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holding. 
It has a couple things that I 

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think Netflix lacked as an 
investment primarily it has a 

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margin of safety. 
I think that AWS as a business 

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acts as this enormous margin of 
safety. 

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Safety to put it in perspective,
there's companies like a 

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Netflix, Disney there is Warner 
media. 

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There's all these streaming 
companies like Starz and 

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Showtime and, you know, all 
these different ones competing 

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to be the best streaming 
service, but no matter which one

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wins. 
It doesn't matter, Amazon wins. 

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They're hosting the data for 
every single streaming service 

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virtually, all of them, except 
for apples right there. 

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Hosting the data for every 
single streaming service. 

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So, the kind of like this real 
estate landlord of the streaming

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services. 
They win, no matter who becomes 

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a Taurus, whether it's Netflix, 
or or Disney, both of them, use 

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AWS. 
So I look at Amazon as an 

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inevitable winner. 
It's a platform that has a 

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growth path that I think is very
unlikely to be disrupted. 

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00:11:12,600 --> 00:11:15,900
And I think that that brings in 
a much larger margin of safety 

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00:11:16,200 --> 00:11:19,200
than the smaller bets of 
companies, like Adobe or 

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Salesforce. 
I think the Amazon is a much 

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safer bet. 
Now, having said that, let's go 

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ahead and look at some of the 
valuation of Amazon and their 

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fundamentals. 
Like I said, the earnings are 

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00:11:27,900 --> 00:11:31,000
right around the corner there. 
Next Is day for Amazon and 

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00:11:31,000 --> 00:11:34,400
that's very important for my 
portfolio because I have over 40

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percent of my portfolio in this 
one company, I can recover from 

252
00:11:38,100 --> 00:11:41,700
a loss in Netflix, I can recover
from a loss in Ali Baba, but I 

253
00:11:41,700 --> 00:11:45,100
cannot recover from a loss. 
In Amazon, this company doesn't 

254
00:11:45,100 --> 00:11:46,900
perform well over the next four 
years. 

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Then I'm not gonna be able to 
outperform the S&P 500. 

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00:11:49,400 --> 00:11:52,700
So having said that, let's go 
ahead and jump right into this. 

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The market cap is one point five
seven trillion dollars. 

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So one and a half trillion 
dollar market cap, a lot of 

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people The Ford PE of the 
company and based Amazon's 

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00:12:02,100 --> 00:12:04,900
valuation off of that. 
I think that's an incorrect way 

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00:12:04,900 --> 00:12:08,000
of looking at it because Amazon,
they do things with their 

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earnings that I don't think are 
fully reflective of their 

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profitability. 
For example, we can look at the 

264
00:12:13,600 --> 00:12:17,300
annual free cash flow here, 
notice how it goes up into the 

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00:12:17,300 --> 00:12:23,100
double digit billions for 2018, 
2019 2020, it's grown 

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00:12:23,100 --> 00:12:27,300
consecutively every single year 
and then Amazon has - free cash 

267
00:12:27,300 --> 00:12:29,900
flow 15 billion in 2020. 
One. 

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00:12:30,100 --> 00:12:34,200
Now did Amazon struggle in 2021?
Did the company was it? 

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Like Netflix where they're just 
losing customers know. 

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This company is on fire, they're
growing like crazy. 

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The reason that they have 
negative fifteen billion dollars

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00:12:41,300 --> 00:12:45,000
of free cash flow in 2021 is 
because they did massive capex 

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investments in their retail 
business. 

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They hired hundreds of thousands
of new employees. 

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They open up hundreds of 
warehouses, they bought planes, 

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00:12:52,800 --> 00:12:55,800
they bought shipping trucks, 
they bought Vans, they did 

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00:12:55,800 --> 00:12:58,400
massive Investments, that they 
expect to get a return on in the

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00:12:58,400 --> 00:13:00,000
future. 
Now, having said, Of that. 

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00:13:00,000 --> 00:13:03,000
Let's go ahead and jump into the
sum of the parts valuation. 

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This is where you break out the 
different aspects of Amazon and 

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00:13:06,200 --> 00:13:09,400
give each of them, their own 
unique valuation based on future

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00:13:09,400 --> 00:13:11,400
assumptions. 
And I think that this is pretty 

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00:13:11,400 --> 00:13:13,100
accurate, conservative 
assumptions. 

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00:13:13,400 --> 00:13:16,200
So, we have the first thing that
we can look at which is one 

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party first-party Revenue. 
This is the stuff that Amazon 

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00:13:19,500 --> 00:13:22,800
sells themself on their website,
not 3rd party seller. 

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00:13:22,800 --> 00:13:27,100
So when Amazon sells their own 
items on their websites in many 

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00:13:27,100 --> 00:13:30,200
cases, it's stuff that other 
people don't want to sell Amazon

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00:13:30,200 --> 00:13:32,800
doesn't really want to compete 
with all their Cellars, they'd 

290
00:13:32,800 --> 00:13:35,700
rather fill in the gaps and make
the shopping experience more 

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00:13:35,700 --> 00:13:37,600
complete. 
They want you to have a wide 

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00:13:37,600 --> 00:13:40,200
selection of stuff. 
So they look for the stuff that 

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00:13:40,200 --> 00:13:43,400
doesn't have great margins and 
that's what they try to sell. 

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00:13:43,400 --> 00:13:46,800
So their first party revenues is
a lot like Walmart. 

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00:13:46,800 --> 00:13:50,000
It's just not high margin. 
It's very low, marginal revenue 

296
00:13:50,000 --> 00:13:53,700
and because of that, we're going
to only give this a 1 times 

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00:13:53,700 --> 00:13:56,400
price to sales. 
So just a one price to sales, 

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00:13:56,400 --> 00:13:59,600
this part of the company will be
valued at one year's worth of 

299
00:13:59,800 --> 00:14:03,400
Tails, they're expected to do in
2023 three hundred and thirty 

300
00:14:03,400 --> 00:14:05,900
six billion dollars. 
In first party sales. 

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00:14:06,100 --> 00:14:08,600
It's a lot of sales, but this is
Amazon, we're talking about. 

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00:14:08,600 --> 00:14:10,900
And if we give that a 1x on the 
price to sales, that's three 

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00:14:10,900 --> 00:14:12,700
hundred thirty, six billion 
dollars market cap. 

304
00:14:12,900 --> 00:14:14,500
So, right there, we have three 
hundred billion dollars in 

305
00:14:14,508 --> 00:14:17,100
market cap for Amazon. 
Now, the third party sales which

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00:14:17,100 --> 00:14:19,900
is hundreds of thousands of 
small businesses selling on 

307
00:14:19,900 --> 00:14:23,000
Amazon's Marketplace. 
This has a much higher margin 

308
00:14:23,000 --> 00:14:26,200
because Amazon basically just 
fulfills the product and they 

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00:14:26,200 --> 00:14:28,000
don't count the entire thing as 
Revenue. 

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00:14:28,200 --> 00:14:30,900
They only count the part. 
That they make money on their 

311
00:14:30,900 --> 00:14:35,100
fees as a revenue of the sales. 
So this is understating how much

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00:14:35,100 --> 00:14:36,800
they actually sell in third 
party sales. 

313
00:14:37,000 --> 00:14:39,600
If you look at the total revenue
of third-party sales, it would 

314
00:14:39,608 --> 00:14:43,000
be multiples bigger than this, 
but since Amazon only counts, 

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00:14:43,000 --> 00:14:46,500
their fees as Revenue, its 159 
billion dollars. 

316
00:14:46,500 --> 00:14:49,200
And because this has three times
a margin of first party sales, 

317
00:14:49,400 --> 00:14:51,400
we're going to give it a three 
times price to sales. 

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00:14:51,700 --> 00:14:54,200
That brings a valuation to four 
hundred and seventy seven 

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00:14:54,200 --> 00:14:55,900
billion dollars in the market 
cap. 

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00:14:56,000 --> 00:14:58,600
Now, moving on, we have the 
retail subscription Revenue, 

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00:14:58,800 --> 00:15:00,900
this is very high. 
Marginal revenue and it's very 

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00:15:00,900 --> 00:15:04,400
consistent sticky Revenue. 
Amazon has one of the lowest 

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00:15:04,400 --> 00:15:07,700
churn rates in the industry 
right there with Costco and 

324
00:15:07,700 --> 00:15:10,300
because this is high-margin 
revenue, we give a higher 

325
00:15:10,300 --> 00:15:12,500
valuation of four times price to
sales. 

326
00:15:12,800 --> 00:15:14,400
Which again, I think is pretty 
reasonable. 

327
00:15:14,500 --> 00:15:17,500
Now, they're expected to have 
fifty two billion dollars of 

328
00:15:17,500 --> 00:15:21,300
subscription Revenue in 2023. 
Which means that this aspect of 

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00:15:21,300 --> 00:15:23,700
the business would be worth two 
hundred eight billion dollars 

330
00:15:24,000 --> 00:15:26,100
based on these assumptions. 
That's what it's worth. 

331
00:15:26,100 --> 00:15:31,200
Now, moving on we have the AWS 
portion of Amazon AWS is by far 

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00:15:31,200 --> 00:15:34,800
the most important most 
profitable biggest growth, path,

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00:15:34,900 --> 00:15:37,000
least, disruptive. 
All biggest Mount part of 

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00:15:37,000 --> 00:15:39,100
Amazon. 
It is the key part of this 

335
00:15:39,100 --> 00:15:42,100
business and I think that in 5 
to 10 years that will become 

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00:15:42,100 --> 00:15:45,100
increasingly clear that when 
you're investing in Amazon, 

337
00:15:45,400 --> 00:15:48,200
you're investing in this 
Powerhouse of a business called 

338
00:15:48,200 --> 00:15:51,600
AWS with their little side thing
that they do in retail and their

339
00:15:51,600 --> 00:15:53,400
Logistics business and their 
subscriptions. 

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00:15:53,500 --> 00:15:56,500
Those are all little site things
around the Central Business, 

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00:15:56,500 --> 00:15:59,100
which is AWS. 
And I think that this business 

342
00:15:59,100 --> 00:16:02,200
in and of itself, This is on par
with the likes of Microsoft so I

343
00:16:02,200 --> 00:16:05,000
hold AWS an incredibly high 
regard and I think that this 

344
00:16:05,000 --> 00:16:09,000
will continue to be a big profit
Center for Amazon now AWS right 

345
00:16:09,000 --> 00:16:10,900
now, does 70 billion dollars in 
Revenue. 

346
00:16:10,900 --> 00:16:15,200
That's their run rate and their 
expected in 2023 to do 111 

347
00:16:15,200 --> 00:16:18,500
billion, which I think is a very
conservative assumption based on

348
00:16:18,500 --> 00:16:22,000
their growth rate, the multiple 
that we're giving it is a 

349
00:16:22,000 --> 00:16:26,300
conservative pain price to sales
a 10 price to sales is a lower 

350
00:16:26,300 --> 00:16:29,500
multiple than Microsoft which 
currently has an 11 or 12. 

351
00:16:29,600 --> 00:16:32,900
And Microsoft is growing around 
half the speed of AWS. 

352
00:16:33,200 --> 00:16:36,600
So, this is a very conservative 
multiple for this company. 

353
00:16:36,900 --> 00:16:41,000
There's arguments out there that
you could give awsa 15 or 20 

354
00:16:41,000 --> 00:16:44,100
price to sales, but we're being 
conservative, giving it a 10 

355
00:16:44,100 --> 00:16:46,700
price to sales. 
That puts the Enterprise value 

356
00:16:46,700 --> 00:16:52,400
of just AWS at one trillion. 100
billion dollars 1.15. 

357
00:16:52,800 --> 00:16:57,100
So, just this portion of Amazon 
in and of itself, I think is 

358
00:16:57,100 --> 00:17:00,200
worth over a trillion dollars. 
I think it's worth the Amazon. 

359
00:17:00,200 --> 00:17:03,400
And if you value any of the 
other business above 400 billion

360
00:17:03,400 --> 00:17:06,200
dollars, which I think is 
extremely silly. 

361
00:17:06,200 --> 00:17:08,400
It's conservative. 
Obviously, it's worth more than 

362
00:17:08,400 --> 00:17:10,900
that. 
I think the Amazon right now is 

363
00:17:10,900 --> 00:17:14,099
heavily undervalued we can 
continue on with this, we have 

364
00:17:14,099 --> 00:17:18,200
the other revenues advertising, 
advertising is a bigger business

365
00:17:18,200 --> 00:17:20,300
for Amazon than it is for 
YouTube. 

366
00:17:20,300 --> 00:17:24,300
YouTube makes less money and 
advertising than Amazon does. 

367
00:17:24,300 --> 00:17:27,200
In fact, Amazon's advertising 
business on their website. 

368
00:17:27,200 --> 00:17:31,200
Amazon.com is not only Bigger 
than YouTube but it's actually 

369
00:17:31,200 --> 00:17:33,800
growing at a quicker Pace, 
they're making more money at a 

370
00:17:33,800 --> 00:17:38,700
quicker Pace than youtube.com. 
We have expectations in 2023 

371
00:17:39,000 --> 00:17:42,100
that the advertising portion of 
Amazon will have fifty nine 

372
00:17:42,100 --> 00:17:44,700
billion dollars in Revenue. 
In this is an extremely high 

373
00:17:44,700 --> 00:17:46,400
margin business. 
This is one of the most high 

374
00:17:46,400 --> 00:17:49,100
margin parts of Amazon. 
If we attach a five price to 

375
00:17:49,100 --> 00:17:52,200
sales on that, which I think is 
conservative that is a 299 

376
00:17:52,200 --> 00:17:54,400
billion dollar market cap. 
So when we break down all the 

377
00:17:54,400 --> 00:17:56,900
parts of Amazon and give them 
all different conservative 

378
00:17:56,900 --> 00:17:59,500
valuations the company should be
worth two. 

379
00:17:59,700 --> 00:18:04,800
Point four trillion in 2023, 
which currently is a 44% upside 

380
00:18:05,000 --> 00:18:08,000
that would mean the price Target
as of right now, pre-split would

381
00:18:08,000 --> 00:18:10,800
be 4850. 
So, the reason that I have 

382
00:18:10,800 --> 00:18:14,500
Amazon is such a big conviction,
such a big bet in my portfolio. 

383
00:18:14,600 --> 00:18:19,000
The reason that I have 42% of my
portfolio allocated to it is not

384
00:18:19,000 --> 00:18:22,400
because I like the logo or I 
like the website or you know 

385
00:18:22,400 --> 00:18:24,800
Jeff Bezos isn't my hero. 
That's not the reason that I'm 

386
00:18:24,800 --> 00:18:27,100
buying this stock. 
The reason that I'm buying it is

387
00:18:27,100 --> 00:18:29,500
because of the valuation. 
I think this. 

388
00:18:29,600 --> 00:18:32,800
Company is heavily undervalued 
based on a breakdown of the 

389
00:18:32,800 --> 00:18:36,000
parts of the company and their 
future growth expectations. 

390
00:18:36,200 --> 00:18:38,900
I think that investors are 
heavily under estimating Amazon.

391
00:18:39,000 --> 00:18:42,000
So with Amazon, I not only have 
very high expectations, but I 

392
00:18:42,000 --> 00:18:44,300
also feel like I have a decent 
margin of safety. 

393
00:18:44,500 --> 00:18:47,200
I don't think I'm going to lose 
any type of money on Amazon. 

394
00:18:47,500 --> 00:18:49,600
Like I have with Netflix, I 
think that it has a much better 

395
00:18:49,600 --> 00:18:51,400
margin of safety. 
And one last thing that I'll 

396
00:18:51,400 --> 00:18:55,200
mention on Amazon, this company 
is constantly still innovating. 

397
00:18:55,300 --> 00:18:59,000
They're still creating new stuff
all the time, Amazon unveils by 

398
00:18:59,000 --> 00:19:03,500
with Expanding Prime, shopping 
benefits, Beyond amazon.com. 

399
00:19:03,700 --> 00:19:07,800
So now third party websites can 
have a by with prime button 

400
00:19:08,100 --> 00:19:11,200
where you pay with Prime and all
the Fulfillment and all the 

401
00:19:11,200 --> 00:19:13,900
customer service, even though 
you're on a third party website 

402
00:19:13,900 --> 00:19:16,000
is still fulfilled through 
Amazon. 

403
00:19:16,100 --> 00:19:18,900
Justice news alone, took Shopify
down 9% today. 

404
00:19:19,200 --> 00:19:22,000
The fact that Amazon is now 
going outside of the bounds of 

405
00:19:22,000 --> 00:19:24,000
amazon.com. 
Now, you're going to be able to 

406
00:19:24,000 --> 00:19:28,400
order from Amazon and their 
fulfillment as a service Beyond 

407
00:19:28,400 --> 00:19:30,400
just amazon.com. 
I'm very bullish on this 

408
00:19:30,400 --> 00:19:32,000
company. 
I look forward to the earnings 

409
00:19:32,200 --> 00:19:34,800
crossing my fingers that it goes
well, but we'll see.