My Favorite Mag-7 Stock Is Trading At A Steep Discount

Technology has become somewhat of a minefield.  Year-to-date, this sector is down 11%, which is substantially more than the 4% decline of the S&P 500. Initially, this was driven by software growth fears and AI disruption. Then, the Iran War pressured sentiment, causing six out of 11 S&P 500 sectors to drop on a YTD basis.  [Inline image] Source: State Street I have often said that I am not a fan of Big Tech, as I prefer to own assets on the receiving end of trillions in long-term AI capital spending. I also warned that AI would create new competition and, generally speaking, hurt long-duration investments. That includes tech. Basically, we are dealing with a binary market uniquely obsessed with the "Magnificent 7."  Investors are endlessly debating whether Microsoft's (MSFT) software integration or Nvidia's (NVDA) hardware monopoly will reign supreme over the next decade. But in my mind, there is absolutely no debate. When you peel back the layers of statistical noise and look at the underlying cash flow engines, Amazon (AMZN) emerges as the undisputed king of the mega-caps. At least, that’s how I view it through my long-term lens.  In my belief, it’s a massive coiled spring, perfectly positioned at the intersection of everyday consumer utility and bleeding-edge enterprise technology. In other words, I think it’s in a great spot to withstand AI disruption and use its existing business to adopt AI and grow earnings without having to rely on aggressive revenue growth, which it gets on top.  The Historic Dethroning: $716 Billion in Absolute Scale For roughly two decades, Walmart (WMT) has held the undisputed title of America's largest company by annual revenue, which is a status it has maintained since 2009. Wall Street assumed that Walmart’s entrenched physical footprint, with 90% of Americans living within 10 miles of a store, provided an insurmountable moat. They were right, but only to some degree.  That has changed, though. Amazon has officially surpassed Walmart, reporting a monumental $716.9 billion in annual revenue compared to Walmart's $713.2 billion, according to The Wall Street Journal.  [Inline image] Source: The Wall Street Journal Technically speaking, total revenue doesn’t matter. We care about growth rates. And in that field, Amazon isn’t bad, either. In 4Q25 alone, it generated more than $210 billion in revenue, which indicates a year-over-year growth rate of roughly 14%.  Even better, during the call, management noted strong customer response to everyday essentials and groceries, proving that even in a volatile macroeconomic environment, Amazon remains the ultimate non-discretionary utility for the American consumer.  [Inline image] Source: Amazon This is the defensive floor that makes the stock so incredibly resilient. When consumers tighten their belts, they don't stop buying toothpaste and pantry staples, but consolidate their spending onto the platform that offers the absolute best combination of price and convenience. And yes, that also means it competes even more with Walmart than before.  Because of that competition, Amazon is now entering what Bloomberg calls a $1 trillion rural market. Amazon is currently executing a $4 billion initiative to build a network of same-day delivery hubs across rural America. It means that they are bringing the super-fast delivery speeds that, so far, were reserved for major metropolitan areas to the country's most remote areas.  [Inline image] Source: Bloomberg Last year, the company added same-day grocery delivery to more than 2,300 towns.  All of these results have resulted in narrowed delivery times to under 24 hours for 1 in 5 rural and small-town households.  That’s impressive for two reasons: Only Amazon has the ability to scale its physical footprint this rapidly.  It’s now turning into a consumer staple for many consumers.  The best thing, how