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Berkshire Hathaway's Stock Picks: Amazon and American Express

Stocks in focus: Berkshire Hathaway's long-term success continues with Amazon and American Express. These picks showcase strong revenue growth and profitability.

Date: 
AI Rating:   7
Earnings Per Share (EPS)
No specific EPS data was mentioned in the report regarding Amazon or American Express. However, the emphasis on operating income increases indicates a focus on profitability.
Revenue Growth
Amazon has achieved an impressive 86% increase in operating income in 2024, with a projected annual growth rate of 21% over the next three years. Additionally, Amazon's digital advertising segment posted an 18% year-over-year revenue growth in Q4 to $17.3 billion, suggesting robust performance.
American Express reported a 9% increase in sales in 2024 and is expected to maintain similar growth this year. This consistent revenue growth is promising for investors.
Net Income
Net income specifics were not detailed in the report, leaving investors to infer that the strong operating income and revenue figures could lead to improved net income figures.
Profit Margins
The report indicates that Amazon has made significant strides in its bottom line improvement due to cost-cutting and efficiency efforts, though specific profit margins were not provided. American Express is positioned well within the premium credit card space, which likely supports solid profit margins.
Free Cash Flow (FCF)
No specific free cash flow information was given, making it difficult to evaluate the immediate liquidity positions of these companies.
Return on Equity (ROE)
The report does not provide specifics on ROE. However, the growth scenarios presented hint that both Amazon and American Express may offer favorable returns for shareholders in the future.
Stocks:  AMZN AXP