Daily Alpha · Substack
· Premarket Alpha · by Buzzberg Research
Gaetano tied Morgan Stanley's higher AWS growth forecasts to Amazon's AI spending while asking for the next results to show new capacity converting into revenue and cash; an AIER essay carried by QTR's Fringe Finance said ten companies make up 40% of the S&P 500's value.
Gaetano said Morgan Stanley's higher AWS forecasts support the AI build but Amazon must show cash-flow conversion
Morgan Stanley raised its Amazon target to $350 from $335 and now expects AWS revenue growth of 47% in 2027 and 42% in 2028; Gaetano wants the next results to show new capacity converting into revenue and cash.
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COHR +4.1% · LITE +3.8% · MU +1.4%Gaetano reads it as continued data-center capex support for GPUs, networking silicon, switches and optical components, with execution and cash-flow risks.
Watch Amazon's next results showing new capacity converting into revenue and cash.
Source →Ten companies account for 40% of the S&P 500's value, per an AIER essay
Peter C. Earle of the American Institute for Economic Research argued that with ten companies at 40% of its value, S&P 500 investors may be far less diversified than they believe.
Earle argues S&P 500 investors may be far less diversified than they believe.
Source →