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Scott Galloway's 2026 Big Tech Stock Pick

December 31, 2025 / 01:59

This episode focuses on stock market predictions, specifically highlighting Amazon as a key investment for 2026. The discussion includes Amazon's operational efficiencies, AI, and robotics.

The host discusses Amazon's current performance, noting it is up only 7% year to date. Comparisons are made with other tech giants like Meta, Alphabet, and Microsoft, which have seen higher revenue per employee.

Key points include Amazon's prediction to double retail revenue without increasing employee numbers, emphasizing the integration of AI and robotics. The host likens Amazon to Ford in terms of operational efficiency improvements.

Amazon's acquisition of Kiva Robots is mentioned as a significant factor in enhancing its logistics, with a notable reduction in shipping times. The host believes this will lead to substantial margin expansion.

Overall, the episode presents a bullish outlook on Amazon's future, particularly due to advancements in technology and operational strategies.

TL;DR

Amazon is the top tech stock pick for 2026 due to AI and robotics efficiencies.

Video

00:00:00
So, my big tech stock pick every year I
00:00:02
pick a big tech stock pick and my stock
00:00:04
pick this year is uh and when I say
00:00:07
outperform, if AI throws up,
00:00:09
everything's going down, folks. So, what
00:00:11
I'm saying is this stock will perform
00:00:12
better. That might be down 10 instead of
00:00:14
down 50. But my big tech pick for 2026
00:00:18
is Amazon. It's been an underperformer
00:00:20
year to date. It's only up 7%. And also
00:00:23
its revenue per employee is down 28%
00:00:26
versus up 49, 56 and 62 at Metal
00:00:30
Alphabet and Microsoft respectively
00:00:32
because they have made massive
00:00:34
investments that have not yet yielded
00:00:36
payoffs. And what's just so striking is
00:00:39
that Amazon is predicting it can double
00:00:41
the revenue at its retail group, which
00:00:43
is as big as topline revenue business,
00:00:45
with no increase in employees. And I
00:00:47
think the chocolate and peanut butter of
00:00:50
AI and robotics at Amazon is huge. And
00:00:53
Amazon is really the Ford of the 21st
00:00:56
century. And that is over several years
00:00:58
Ford was able to take the time to
00:01:00
manufacture a car down 90%. And Amazon
00:01:06
just since its acquisition of Ka Robots
00:01:08
has been able to take down click to
00:01:10
fulfill or to ship down by 80%. Amazon
00:01:14
has a million operational industrial
00:01:16
robots. So Amazon has two and a half
00:01:19
times the number of operational robots,
00:01:22
industrial robots is the rest of the
00:01:24
nation combined. So they have made an
00:01:27
enormous bet and typically margin
00:01:29
expansion from Amazon has come from its
00:01:32
media group where you have it forced to
00:01:34
advertise or from its cloud group. But
00:01:37
you're going to see a margin expansion
00:01:39
at the hands of operational efficiencies
00:01:41
from robotics and AI in its retail
00:01:44
group. So in some it's a fair value
00:01:46
right now. And I think you're about to
00:01:47
see the mother of all margin expansion
00:01:49
at the hands of AI and robotics. So my
00:01:51
big tech stock pick for 26 is Amazon.

Episode Highlights

  • Big Tech Stock Pick for 2026
    This year’s big tech stock pick is Amazon, an underperformer with potential for growth.
    “My big tech pick for 2026 is Amazon.”
    @ 00m 14s
    December 31, 2025

Episode Quotes

Key Moments

  • AI Impact00:07
  • Amazon's Robotics01:06
  • Margin Expansion01:49

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