Matt Frankel

I mean, Amazon has, just to give you some of the numbers, over 200 fulfillment centers already, over 80,000 trucks, 100 cargo aircraft that it owns, and more.

And it has excess capacity right now.

And being able to fill that capacity cheaply is a big advantage to getting this started.

But the idea is by the time CapEx is needed, this will have been a proven business model.

But on the other hand, FedEx and UPS have significantly greater capabilities when it comes to things like ocean freight, freight forwarding, and other critical areas of the process that Amazon would have to spend heavily on.

So it is a really good question, the why now.

Why is this the optimal time to build this out?

My short answer is the reasons for the profit-taking matter.

For example, I've done this in the past if the valuation became too high and became too high of a percentage of my portfolio for comfort.

Even though if it ends up going higher, in my case, it was Apple that I sold for that reason, it's not necessarily a bad move.

But in general, I ask myself, is the higher valuation justified by the recent results?

Do I believe in the ability of management to keep the growth story going?

And above all, do the reasons I bought the stock in the first place still apply?

So I don't necessarily think you make a bad move by trending, especially if you have valuation concerns, but it really depends on the specifics of the situation.

Nobody has been more skeptical about OpenAI's longer-term revenue projections, all these circular deals we're seeing among these AI companies.

No one's been more skeptical about all this than me.

Maybe you.

Management has said $280 billion of revenue by 2030.

That's more than Nvidia has by a mile.

But take this report with a big grain of salt.