Profit Pregame

Two Tech Giants Square Off Again – Here’s Which One You Should Buy

A $10 Billion Jackpot is Up for Grabs Again

A momentous decision has two of the world’s biggest tech firms competing for a massive contract.

What’s happening?

Perhaps the most influential figure in both technology and retail over the last twenty years stepped down from his position as CEO of one of the world’s largest companies this week.

I’m talking, of course, about Amazon.com, Inc. (AMZN) founder Jeff Bezos.

Since Amazon’s IPO in May 1997, Bezos has guided Amazon along a path that would revolutionize the way consumers shop for nearly every kind of product.

Bezos’ leadership also helped make AMZN investors untold amounts of money with more than a 285,000% rise in its share price since the stock hit its all-time low on May 22, 1997.

As Bezos moves on from his role as CEO, he will be replaced by Andy Jassy, who has led Amazon Web Services (AWS) since its start in 2003.

Jassy has also experienced his own share of success at Amazon, pioneering the original idea for AWS and building it into a $50 billion powerhouse in the cloud computing industry.

And as far as first days on the job go, Jassy’s couldn’t have gone much better.

That’s because Amazon received some fantastic news that could result in a $10 billion windfall for its cloud computing arm.

Where’s the money?

On Tuesday, the Department of Defense (DoD) announced that it will be cancelling a contract which it had awarded to Microsoft Corporation (MSFT).

The Joint Enterprise Defense Infrastructure (JEDI) cloud contract – a $10 billion contract for cloud computing services which would house large amounts of classified government data – had been a contentious issue for Amazon since it was awarded to Microsoft in 2019.

Amazon quickly moved to block work from beginning on the contract by filing suit in federal court, arguing that Amazon had lost the contract for personal and political reasons, not on the merits of its bid.

Amazon claimed that former President Trump had intervened in the competition and swayed decision-makers towards Microsoft because of a public feud with The Washington Post and Jeff Bezos, who bought the newspaper in 2013.

As a result, the Pentagon has decided to scrap the existing contract and restart the bid process for the job because the JEDI contract no longer meets the DoD’s needs due to the delay caused by the legal battle. The new contract will be known as the Joint Warfighter Cloud Capability, and both Amazon and Microsoft will compete for it.

The move looks like a clear win for Amazon at worst and a setback for Microsoft at best. Still, with two of the tech world’s superpowers set to faceoff again for the DoD’s massive cloud computing contract, investors are unsure which to turn to.

For my money, this is the company I’d prefer…

How do I get some?

It seems that everything that the government has been trying to do in the world of big tech isn’t working too well for them lately.

Last week, a federal judge dismissed the Federal Trade Commission’s antitrust lawsuit against Facebook, Inc. (FB) – as well as a separate case brought by the district attorneys of several states – on the grounds that the complaints were legally insufficient to proceed.

Now, we see the DoD having to start over in its journey to bring cloud computing technology to the armed forces.

While we still don’t know the final price tag of the new contract, it has been characterized as being “in the billions” by John Sherman, acting chief information officer for the DoD. Components of the new contract will also be awarded to multiple vendors, per reports.

In other news, we see interest rates moving lower, so we see technology moving higher while banks and energy move lower.

Ultimately, this news was good for Amazon, but I think that AMZN stock has moved too much, too fast. Following the Pentagon’s decision, AMZN boomed as much as 6.3% from Friday’s close. With the RSI above 75, traders would be wise to wait for a pullback to around $3,500 before jumping in.

BUY THIS, NOT THAT: The Best (and Worst) Stocks in America

Amazon and Microsoft aren’t the only stocks investors are conflicted over.

And Wall Street insider Shah Gilani wants to help.

He’s going to show you which stocks you should consider buying NOW and which to sell ASAP.

Almost no one realizes this, but some of the most dangerous, portolio-wrecking stocks are also some of the most popular picks on the market.

Which is why Chief Investment Strategist Shah Gilani is going on the record directly from his penthouse in the Hamptons to show you exactly which stocks to buy and which to sell.

In under and hour, Shah will go through all 50+ stocks you should know about – for better or for worse.

This event could revolutionize how you make money in 2021 and beyond.

And you don’t have to sign up for a thing to get it.

All you need to do is click here to view them now.

In the Spotlight: A New Market for My Favorite Pot Play

After completing a highly touted merger with Aphria in May of this year, Tilray, Inc. (TLRY) has quickly become an industry leader in the Canadian cannabis space.

And that merger is already primed to deliver a new source of revenue abroad.

Yesterday, Tilray announced that its subsidiary, Aphria RX GmbH, had completed the first harvest of medical cannabis to be offered for sale in Germany.

The news marks a huge milestone for Tilray, which was banking on Aphria’s European connection when it spent more than $700 million to acquire Aphria. While increasing sales in Canada will be Tilray’s main focus, the European market presents a huge opportunity for expansion.

I have been touting Tilray as my favorite name in the cannabis space for months now, and this news confirms my belief in the stock. I don’t believe Tilray is done making big moves that will shape the industry, either. So I’ll be keeping a close eye on this company for any further developments, and I will be sure to keep you informed here on Profit Pregame.

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