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Scott Galloway's 2026 Big Tech Stock Pick

December 31, 2025 / 01:59

This episode discusses the future of Amazon as a tech stock pick for 2026, focusing on its potential for margin expansion through AI and robotics.

The host highlights Amazon's current performance, noting it is only up 7% year to date and has a lower revenue per employee compared to competitors like Meta, Alphabet, and Microsoft.

Key points include Amazon's prediction to double retail revenue without increasing employee numbers, and the significant impact of its operational robots, which outnumber those of the rest of the nation combined.

The host compares Amazon to Ford in terms of manufacturing efficiency, emphasizing the potential for operational efficiencies to drive margin expansion.

Overall, the episode presents a bullish outlook on Amazon's stock, suggesting it is fairly valued and poised for significant growth.

TLDR

Amazon is the host's top tech stock pick for 2026 due to AI and robotics potential.

Episode

1:59
00:00:00
So, my big tech stock pick every year I pick a big tech stock pick and my stock pick this year is uh and when I say
00:00:07
outperform, if AI throws up, everything's going down, folks. So, what I'm saying is this stock will perform
00:00:12
better. That might be down 10 instead of down 50. But my big tech pick for 2026 is Amazon. It's been an underperformer
00:00:20
year to date. It's only up 7%. And also its revenue per employee is down 28%
00:00:26
versus up 49, 56 and 62 at Metal Alphabet and Microsoft respectively because they have made massive
00:00:34
investments that have not yet yielded payoffs. And what's just so striking is
00:00:39
that Amazon is predicting it can double the revenue at its retail group, which is as big as topline revenue business,
00:00:45
with no increase in employees. And I think the chocolate and peanut butter of AI and robotics at Amazon is huge. And
00:00:53
Amazon is really the Ford of the 21st century. And that is over several years Ford was able to take the time to
00:01:00
manufacture a car down 90%. And Amazon just since its acquisition of Ka Robots has been able to take down click to
00:01:10
fulfill or to ship down by 80%. Amazon has a million operational industrial robots. So Amazon has two and a half
00:01:19
times the number of operational robots, industrial robots is the rest of the nation combined. So they have made an
00:01:27
enormous bet and typically margin expansion from Amazon has come from its media group where you have it forced to
00:01:34
advertise or from its cloud group. But you're going to see a margin expansion
00:01:39
at the hands of operational efficiencies from robotics and AI in its retail group. So in some it's a fair value
00:01:46
right now. And I think you're about to see the mother of all margin expansion
00:01:49
at the hands of AI and robotics. So my big tech stock pick for 26 is Amazon.

Episode Highlights

  • Amazon: The Big Tech Pick for 2026
    Despite underperformance, Amazon is poised for significant growth with AI and robotics.
    “My big tech pick for 2026 is Amazon.”
    @ 00m 18s
    December 31, 2025

Episode Quotes

  • Amazon is really the Ford of the 21st century.
    Scott Galloway's 2026 Big Tech Stock Pick
  • You're about to see the mother of all margin expansion.
    Scott Galloway's 2026 Big Tech Stock Pick

Key Moments

  • Amazon's Underperformance00:18
  • AI and Robotics Impact01:51