Bill Baruch Buys More Amazon and Uber: Trade Tracker Insights

Amazon Investment Rationale

• 💡 Amazon is viewed as a breakout story, with significant potential in its AWS division and data center buildout.
• 📈 AWS showed a reacceleration in growth, reaching 20% in the latest report, which was a key driver for adding to the position.
• 💰 Despite a recent pullback, Amazon is trading at a forward P/E of 26.6, below its long-run average of 37, indicating value.
• 🚀 The stock has broken out above its February record high, with significant support around that level.
• 🤖 Beyond AWS, robotics and productivity gains in retail are seen as additional catalysts, with a controversial take that Amazon may be better at robotics than Tesla.

Uber Investment Rationale

• 🎯 Uber is considered a top holding, with a recent purchase increasing its weighting to 9% in a constrained portfolio.
• 💸 The primary catalyst for this investment is its free cash flow story, which increased by 45% on a trailing 12-month basis.
• ⚠️ The company's autonomous vehicle operations are expected to be unprofitable for years, but this is not the focus of the investment.
• 📈 The stock experienced a pullback after earnings, but $85 is seen as a tremendous area of support, with potential spikes to $93-$95.

Market Context and Strategy

• 📊 The recent pullback in equity markets, including the S&P hitting a trend line back to May lows, presents an opportunity.
• 🗓️ Early month pullbacks have historically led to rallies throughout the remainder of the month, suggesting a bullish outlook.
• 💰 The strategy is to use these market pullbacks as a reason to deploy cash into favored names that reported strong earnings.