Buy Amazon on cash flow, skip Microsoft on AI competition

01/13/2024 04:47
Buy Amazon on cash flow, skip Microsoft on AI competition

In the latest installment of Yahoo Finance's Good Buy or Goodbye, Jared Blikre is joined by Constellation Research Founder and Principal Analyst R "Ray" Wang to review Magnificent Seven tech stock components Amazon (AMZN) and Microsoft (MSFT). Wang explains his bullish case for Amazon is enhanced by the diversity of the online retailer's digital stream of income and its venturing into AI. "They've done $200 billion of investments and capital. that means the free cash flow has been really bad, but we're now on the other end of that," Wang says. "When we look at that, you're going to see the ability for them to actually put that free cash flow to use, not just in profits, acquisitions, reinvestment..." Wang is bearish on Microsoft, saying goodbye to the tech stock on tightening competition in the AI development landscape — especially from Google (GOOG, GOOGL) — and its valuations. Click here to watch more of Good Buy or Goodbye or you can watch this full episode of Yahoo Finance Live here. Editor's note: This article was written by Luke Carberry Mogan.

In the latest installment of Yahoo Finance's Good Buy or Goodbye, Jared Blikre is joined by Constellation Research Founder and Principal Analyst R "Ray" Wang to review Magnificent Seven tech stock components Amazon (AMZN) and Microsoft (MSFT).

Wang explains his bullish case for Amazon is enhanced by the diversity of the online retailer's digital stream of income and its venturing into AI.

"They've done $200 billion of investments and capital. that means the free cash flow has been really bad, but we're now on the other end of that," Wang says. "When we look at that, you're going to see the ability for them to actually put that free cash flow to use, not just in profits, acquisitions, reinvestment..."

Wang is bearish on Microsoft, saying goodbye to the tech stock on tightening competition in the AI development landscape — especially from Google (GOOG, GOOGL) — and its valuations.

Click here to watch more of Good Buy or Goodbye or you can watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Luke Carberry Mogan.

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