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The storied Dow Jones Industrial Average ( ^DJI -0.28% ) is one of the oldest and most reputable stock market indexes. The 30 Dow components are industry-leading blue chip stocks representing their respective stock market sectors. But the Dow has undergone major transformations over the last five years. The two latest changes came this year, with Amazon ( AMZN 2.94% ) replacing Walgreens Boots Alliance in February and Nvidia ( NVDA -1.81% ) replacing Intel in November. Amazon and Nvidia wasted no time proving their value in modernizing the Dow, with both components outperforming the S&P 500 ( ^GSPC 0.25% ) and Dow indexes year to date. But investors care more about where a company is going than where it has been. Here's why Nvidia stands out as a better buy than Amazon for 2025, and some factors to consider when buying leading growth stocks at all-time highs. Succeeding together Before getting too far into our discussion, it's worth mentioning that Amazon's cloud computing arm, Amazon Web Services (AWS), is a major customer of Nvidia. So there's certainly a scenario where both companies thrive and post market-beating gains, or slowdowns at AWS trickle down to Nvidia. On Dec. 3, Nvidia announced that its latest tech, including its Blackwell architecture for generative artificial intelligence (AI), was coming to AWS. A new computing platform available through AWS Marketplace Private Offers will allow enterprises to build AI models with the support of Nvidia experts. AWS has developed liquid-to-chip cooling across its data centers with a new solution that offers air- and liquid-cooling capabilities for powerful AI supercomputer systems like the Nvidia GB200 NVL72. Nvidia is the undisputed leader in chips for hyperscalers, and AWS is the leading hyperscaler -- commanding roughly the same market share as Microsoft Cloud and Alphabet -owned Google Cloud combined. According to a Nov. 1 report from Synergy Research Group, AWS holds a 31% market share over the cloud market compared to 20% for Microsoft and 13% for Google. However, AWS doesn't have nearly the dominance in cloud as Nvidia does in chips for data centers. The better business model Over its history, Amazon has been a remarkably flexible company, branching into different end markets and enduring several periods of economic uncertainty . The company's network effects, leading cloud position, growing e-commerce business, and combination of diversification and disruption are valid reasons to buy Amazon stock like there's no tomorrow . AWS' operating income comprised 62% of Amazon's total operating income for the nine months ending Sept. 30, 2024. Compared to the same period last year, AWS revenue increased by $12.22 billion, but its operating expenses only increased by $479 million, so nearly all of that revenue gain translated to operating income growth. However, without the contribution from AWS, Amazon simply isn't growing very quickly. AWS has expanded Amazon far beyond e-commerce and made it a better business, but not in the same way that chips for data centers have been a game changer for Nvidia. In Nvidia's recent quarter, which was third-quarter fiscal 2025 (ended Oct. 27), Nvidia reported $30.77 billion in revenue consisting of $27.64 billion from compute and $3.13 billion from networking. Operating income from the compute and networking segment came in at $22.081 billion -- giving the segment a ridiculously high operating margin of 71.8%. For context, Amazon -- as a whole -- booked $17.41 billion in operating income in its recent quarter. And AWS' margins aren't nearly as high as Nvidia's. Nvidia's gaming and AI PC, professional visualization, and automotive and robotics segments combined for $4.22 billion in revenue. The graphics segment earned just $1.502 billion in operating income. It's hard to believe, but five years ago, Nvidia's data center business was smaller than its graphics segment . Whereas today, data center makes up over 85% of Nvidia's revenue and over 90% of its operating income. In the quarter, Nvidia said that cloud service providers made up around 50% of its data center revenue, while the remainder consisted of consumer internet and enterprise companies. These customers (like AWS) are some of the highest-quality customers in the world. They are the exact kind of customers Nvidia wants because they have the financial means to invest through market cycles. Nvidia went from a chip company for graphics to a chip company for data centers. In contrast, Amazon still does many different things, but the best part of its business is AWS. Nvidia has better margins and more growth potential. It has a more commanding market share. And it is a more pure-play investment thesis on data center growth, whereas Amazon's investment thesis crosses more industries and is more complex. Nvidia has a fair valuation Nvidia's biggest risks are a slowdown in AI capital spending or competition coming along and eroding margins. But so far, that hasn't happened. Nvidia has so far been an earnings-driven story. In fact, earnings growth has outpaced the growth in the stock price. NVDA data by YCharts Eventually, Nvidia's growth will probably slow down. But until that happens, it's hard to call Nvidia a bubble because the business is delivering real, bottom-line results. This isn't a company that has the potential to do amazing things in the future; rather, it is delivering unbelievable results right now. Because Nvidia has been an earnings-driven story, its valuation remains reasonable. Nvidia has a higher price-to-earnings (P/E) ratio and forward P/E ratio than Amazon. But as you can see in the chart, the gap between the valuations of both companies could narrow if Nvidia continues to grow its earnings at a faster pace. NVDA PE Ratio (Forward) data by YCharts Only buy Nvidia if you have a long-term mindset Nvidia and Amazon are excellent companies that stand to benefit from higher AI spending. However, competition or a cyclical slowdown could quickly make both companies look more expensive, leading to a steep sell-off. When buying industry-leading growth stocks at all-time highs, it's important to understand that the factors contributing to the record highs could be the same ones leading to a sell-off. Wall Street will waste no time downgrading a stock based solely on its near-term growth prospects. However, the good news is that individual investors don't have to get caught up in the noise and, instead, can focus on the long-term investment thesis. Investors interested in Nvidia should continue to monitor its pace of technological advancements and ability to monetize those improvements. Currently, Nvidia is out-innovating its competition, so it can still charge top dollar for its products. Furthermore, its customers are doing so well that they can afford to pay pretty much whatever Nvidia is charging. Nvidia is at the top of its game, and there has yet to be any concrete reason to believe it will change. But if the cycle does turn, there will be signs from Nvidia's top customers like AWS and Meta Platforms . The stock price continues to be driven by earnings growth, which should continue next year. In sum, Nvidia has a simpler and more effective business model than Amazon and much better growth, making it the better buy now.
An accuser against disgraced music and fashion mogul Sean “Diddy” Combs, who has up to now been anonymous, has been revealed as the ex-wife of an NHL hockey star, as the accusations, court cases, and charges continue to grow. A long list of Jane and John Does have filed sexual assault lawsuits against Diddy, but TMZ has discovered that one of those anonymous filers has been identified as Anna Kane, the ex-wife of Edmonton Oilers Wing, Evander Kane. It appears that Kanes was required to reveal her identity by a court order if she wanted to continue the lawsuit, TMZ discovered. In her suit, Kanes claims that she was a 17-year-old high school student when she got involved in Diddy’s parties and she says she was gang raped by his guests and associates at one of those parties. “I had hoped to use a pseudonym in pursuing justice for what happened to me as a teenager. Defendants’ demand that I use my name was an attempt to intimidate me, but I am not intimidated. I am prepared to proceed and hold accountable those who have harmed me,” Kanes said through a statement from her lawyer. Kanes alleges that Bad Boy Entertainment President Harve Pierre, who she says told her she was “hot,” invited her to a party in New York in 2003 when she was in 11th grade. She claims that after being invited onto a private jet, she ended up at a Diddy party where she met the rap legend at his recording studio. She said that she was given unknown drugs and alcohol before Diddy and his guests sexually assaulted her. Diddy himself raped her in a bathroom, she claims Kanes supplied photos allegedly showing her inside Diddy’s recording studio. Anna was married to the NFL star from 2018 to 2021 and had one child with him before their divorce. The slew of lawsuits — one including an accusation he raped a ten-year-old boy — is far from the only legal jeopardy the music mogul faces. Combs has been in jail since September 16 when he was arrested following a federal indictment accusing him of more than a decade of abusing, threatening, and coercing both men and women, racketeering conspiracy, sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice, among other crimes. The music mogul has been denied bail three times after a New York judge ruled that Combs must remain behind bars at the Metropolitan Detention Center while he awaits his upcoming sex trafficking trial, set for May 5. Follow Warner Todd Huston on Facebook at: facebook.com/Warner.Todd.Huston , or Truth Social @WarnerToddHuston
The request came as TikTok and the Biden administration filed opposing briefs to the court, in which the company argued the court should strike down a law that could ban the platform by January 19 while the government emphasised its position that the statute is needed to eliminate a national security risk. “President Trump takes no position on the underlying merits of this dispute. Instead, he respectfully requests that the court consider staying the Act’s deadline for divestment of January 19 2025, while it considers the merits of this case,” said Mr Trump’s amicus brief, which supported neither party in the case. The filings come ahead of oral arguments scheduled for January 10 on whether the law, which requires TikTok to divest from its China-based parent company or face a ban, unlawfully restricts speech in violation of the First Amendment. Earlier this month, a panel of three federal judges on the US Court of Appeals for the District of Columbia Circuit unanimously upheld the statute, leading TikTok to appeal to the Supreme Court. The brief from Mr Trump said he opposes banning TikTok at this junction and “seeks the ability to resolve the issues at hand through political means once he takes office”.Bath fightback falls short as LA Rochelle hold on
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