David Rosenthal: belief

Transcript context

…What are Amazon's margins, David? I thought about that. About $400 billion of that is retail revenue, but about $75 billion, more than $70 billion, is AWS revenue, which is very high margin revenue. Each of those retail in AWS, I think there is a bear narrative around that I just simply don't agree with right now. I think the bear narrative on AWS is, yes, it's amazing. High margin business. Hats are off to Bezos and to Andy Jassy for building it, but its days are numbered. Azure and Google Cloud are growing faster. Amazon, despite being the early leader in cloud, might actually end up losing this market. I think that's utterly ridiculous. AWS is growing at 37% annually on a $75 billion base. Google and Microsoft are growing at 45%, but their market share combined is still significantly less than Amazon. Yes, it's growing slower, but it's bigger than both of them combined. None of that matters. The market that we're talking about here is the Internet. This is the Internet. This is the picks and shovels of the Internet. Amazon is the clear market leader growing 37% a year. I cannot imagine any other asset. I would rather own, period anywhere. That's AWS. On the retail narrative, like you said, literally, Goldman issued a research note last week. That was a thought exercise, they didn't actually mean this, but valuing retail at zero. People have been doing this for 20 years. Wait, can we get to that for a second? How does that work? They issued a research report as a thought exercise.…

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