The hardest point of analysis is to find out the exceptional case, no matter in technical analysis or fundamental analysis. Today we are talking 2 exceptional cases. In macro scenario is that would the curse of September come true or disappear? This will be talked in market observation. From micro scenario is that why the blue-chip stock AMZN dropped while NASDAQ and Magnificent Seven are on record high?
The development of cloud business and robot of AMZN has begun since 2020, earlier than other competitors, but now those left behind are chasing up the AWS of AMZN. Please refer to the GOOG cloud and Microsoft Azure discussed in previous days. On July 31 and Aug 1, MSFT and GOOG had jumping gap up but AMZN had jumping gap down. It is in case of software. How about hardware?
The robot of AMZN is now up to the number of 1 million, but TSLA only will product 5K by the end of 2025 and 50K by 2026. So, what is happening? What AMZN is possessing? Their robots are just mechanical designs like robot arm, robot lifting machine, robot sorting and re-organizing machine. People would just call them machines rather than robot. But what TSLA producing is humanoid robots, in form of human beings. Regretfully the AI comments did not point out this for I had not told them to do so. What I assume is that they should know this, but they may assume all readers should know about it thoroughly and thus no need to say.
Make it simple, AMZN had already produced 1 million automatic machines in factories and warehouses which can help human being to move, arrange and organize properly and can do their job according to human voice orders. They had been functioning for years. They have the brain of human but the appearance is just a machine with wheels. For TSLA, their aim is to make humanoid robot more popular, so from 2030 to 2035, most families would possess at least one humanoid robot as that of a washing machine or refrigerator now. On the other hand, they still have competition in China. People said that the function and quality of US is much better, it is no wrong, but those from China are more attractive and down to earth. The first one-man band coffee shop has been opened in Beijing; it is run by a humanoid robot of selling coffee, soft drinks and cakes. Customers went there not because of coffee or cake, but because of seeing how the humanoid robot works. They even have humanoid soccer team to match with others domestically. In case of humanoid robot, no problem US is on the place of number one on the whole, but Elon Musk said, from number 2 to number 10 will be all by Chinese companies.
So, is AMZN worthy of buying? When comparing with the Magnificent 7 or Top 10, its price is the lowest. But we can never buy a stock because of the price is low, we have to view the outlook and comparison with other competitors, no matter in domestic market or international market. Please refer to other AI stocks discussed recently one by one.
Even TSLA is still in moonshot style, even TSLA has been awakened from hibernation, even TSLA only ranks number 10 in Top 10, it is still more worthy of buying than AMZN. If you want to have a 1,000% or 2,000% profit like Warren Buffet, what would you choose?