Office Hours: Will Boom Supersonic Planes Live Up to the Hype? Buying Amazon Stock and Taking a Gap Year Before College

Market Position

Amazon's current market position is under scrutiny as it trades at a 52-week low. Scott Galloway highlights that despite this, Amazon remains a dominant force in both the e-commerce and cloud markets, holding a 50% share in e-commerce and being the largest cloud company globally. He shares his personal investment experience, noting that while the stock has decreased by 48% in the past year, he continues to hold Amazon stock due to its long-term potential 1.

Amazon is one of my three or four largest holdings. I have owned it since 2000. I don't know, nine. I think I've sold a little bit to pay for a house in 2013. But it's been an unbelievable gift.

--- Scott Galloway

Galloway advises caution in stock recommendations, emphasizing the unpredictable nature of the market 1.

   

Future Strategies

Looking ahead, Scott Galloway suggests that Amazon's strategic moves could significantly impact its market value. He speculates that Amazon might spin off AWS, its cloud service, which he believes is one of the most valuable companies globally. Galloway argues that an independent AWS could become a must-own stock, potentially boosting shareholder value if the current stock performance doesn't improve 1.

I believe that the most accretive action and what will likely happen in the next two to three years if the stock does nothing recover, is that Andy Jassy will spin AWS.

--- Scott Galloway

This move could unleash AWS's potential, currently constrained within Amazon's broader e-commerce framework 1.