Berkshire's Picks: Amazon and Mastercard Shine

In today's volatile market, Berkshire Hathaway's stock picks, particularly Amazon and Mastercard, present promising investment opportunities. With strong revenue growth and competitive advantages, these stocks could yield exceptional returns for investors.

Date: 20-04-2025

AI Rating: 8

**Earnings Per Share (EPS) & Net Income**: The report indicates that Mastercard, a key component of Berkshire's portfolio, has been performing admirably with its EPS and net income. The firm recorded a net income of $12.9 billion in the previous year, showcasing robust earnings growth, with an anticipated annual EPS growth of 14%. This is a significant indicator of profitability and a sound investment metric, likely contributing to positive investor sentiment. Amazon's growing cloud services, primarily AWS, contribute positively to its revenue structure and assist the company's competitive standing in the market. **Revenue Growth**: For Mastercard, revenue grew by 12% in 2023, amounting to $28.2 billion despite economic fluctuations. Meanwhile, Amazon's AWS revenue grew by 18% in 2024, totaling around $107.6 billion. The ongoing expansion in these sectors suggests strong revenue trajectories which can significantly influence future stock price performance positively. **Profit Margins**: Mastercard benefits from high profit margins, processing $9.8 trillion in transactions, leading to net income growth of 15%. Its stable business model allows it to convert a substantial part of its revenue into profits, reinforcing investor confidence amid economic uncertainties. **Conclusion**: Both stocks present a compelling case for professional investors. While Amazon shows promising revenue growth through its SaaS and cloud capabilities and a competitive edge in AI-driven e-commerce, Mastercard's strong historical performance and profitability metrics suggest it continues to be a resilient investment choice. Monitoring their EPS and net income can provide further insights into their respective valuations and stock price movements over the holding period. Overall, investors may view these companies as integral to a diversified portfolio, especially given their financial health and growth potential in the current market environment.

Stocks: AMZN MA