TIP745: Best Quality Stock Idea Q3 2025 w/ Clay Finck
We Study Billionaires - The Investor’s Podcast Network
The Transition from Traditional IT to Cloud Computing
This chapter examines the struggles of legacy technology firms such as IBM and Oracle in adapting to the evolving market dominated by cloud computing. It underscores the competitive edge of cloud services like Amazon AWS, illustrating their cost benefits and efficiency gains that redefine business data management.
On today’s episode, Clay Finck breaks down his best quality stock idea for Q3 2025: Amazon.
Clay explores how Amazon has evolved from a low-margin online retailer into a diversified, high-margin tech platform. He also makes the case as to why Big Tech may be systemically undervalued, providing a unique opportunity for investors willing to ride out the higher levels of stock price volatility.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro 03:02 - Why Big Tech, despite its size, may be systemically undervalued. 15:16 - How Amazon evolved from a low-margin online retailer into a high-margin tech platform. 25:11 - The three megatrends Amazon is positioned to benefit from. 29:17 - A breakdown of Amazon’s four main business segments: Retail, AWS, Advertising, and Prime. 50:02 - Amazon’s key competitive advantages and culture of reinvention. 55:07 - How we view Amazon’s valuation today. And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join Clay and a select group of passionate value investors for a retreat in Big Sky, Montana. Learn more here.
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- MBI Deep Dives: Amazon.
- The Intrinsic Value Podcast episode on Amazon.
- Daniel’s model for Amazon.
- The Systemic Undervaluation of Big Tech.
- Mentioned Episode TIP727: 7 Powers by Hamilton Helmer.
- Related Episode TIP722: Best Quality Idea Q2 2025.
- Related Episode TIP698: Best Quality Idea Q1 2025.
- Related Episode TIP675: Best Quality Idea Q4 2024.
- Related Episode TIP652: Best Quality Idea Q3 2024.
- Follow Clay on X and LinkedIn.
- Check out all the books mentioned and discussed in our podcast episodes here.
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