Jason Brown returns to Big 3 and offers stocks he sees adding muscle to the AI infrastructure theme. He sees Amazon (AMZN) &quot;at the beginning, not the end&quot; of its AWS capabilities, Cisco (CSCO) benefitting from hyperscaler and neocloud orders, and CrowdStrike (CRWD) serving as a crucial backbone for software as AI buildout continues. Jason adds to his analysis with example options trades while Rick Ducat offers technical insight of key support and resistance levels. ======== Schwab Network ======== Empowering every investor and trader, every market day. Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185 Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7 Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore Watch on DistroTV - https://www.distro.tv/live/schwab-network/ Follow us on X – https://twitter.com/schwabnetwork Follow us on Facebook – https://www.facebook.com/schwabnetwork Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/ About Schwab Network - https://schwabnetwork.com/about

The Big 3: AMZN, CSCO, CRWD

Schwab Network

# Full Transcript

**Podcast:** Schwab Network

## Participants

- **Jason Brown** (None)
- **Rick Ducat** (None)

## Transcript

And it's time for the Big 3. Three stocks, three charts and three trades. Rick Ducat will take us through the charts and here to take us through the trades is Jason Brown, stock market expert at thebrownreport.com and author of Five Year Millionaire. So great to see you both. And Jason, let's start things off with your thoughts on Amazon and sort of weighing some of the long term AWS and AI growth expectations against, say, some of the recent sideways activity that we've been stuck in.

Yeah, thanks for having me. When you look at Amazon, I dove into the numbers even further. And the numbers are just exceptional. When you look at AWS sales, so it rose 20% to about 128 billion. But think about it like this. AWS generated 45 billion of operating income, while overall, Amazon generated about 80 billion of operating income. So when you drill down and ask,

what does that mean? AWS pretty much generated over half of the operating income while only being 18% of the product mix for Amazon. And when you think about what's happening with AI, one of the biggest constraints is that they need computing power, they need processing power. And we still have yet to see all of the apps and the different things that people will develop

on the back of AI, which I believe all the capex spending for Amazon is going to come back to it, you know, 2027, 2028, 2029. As we look out in the future, the computing power is only going to continue to increase, not to mention their Tranium chips that they're getting commitments from over 100 billion from open AI over the next eight years. You had commitments from Anthropic to use it,

Uber to use it for their AI workloads. And so this is just the beginning and not the end. And when you look at that from a technical standpoint, stock double bottom around 200 is moving higher. I like Amazon right here right now, but not only for a trade, but I think for the next few years, we'll see this AWS story play out. And Amazon actually quietly having a really decent week, we're up over 7% at least on the week so far,

and today outperforming the overall market. And so Rick, when you assess now the recent technicals, obviously we broke down pretty substantially on the back of its most recent earnings. We've been trying to find footing ever since, but as Jason just laid out, I mean, we have been in a bit of a period of consolidation. Yes. So here's that earnings drop off that you mentioned right here. So a big fall down to that 200 level that Jason mentioned here. So these green lines that we

have highlighted here, the 202 level here is one that marked some notable low points here. And then back here as well, 198 and then our gap level near 195. So you can see obviously these areas are around where we bottomed out during our most recent plunge to the downside here. After a symmetrical triangle type pattern, we h...

The Big 3: AMZN, CSCO, CRWD

Transcript

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The Big 3: AMZN, CSCO, CRWD

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.