Goldman Sachs' Eric Sheridan talks tech stocks seeing worst trading day in four months

Market Trends & Digital Economy - The digital economy is accelerating despite economic fears [1] - AI spend continues to build momentum in both enterprise and consumer computing [2] - Strength in the digital economy and AI economy will outweigh volatility in the long term [10] Amazon's Performance & AWS - AWS revenue slightly disappointed relative to Google Cloud and Microsoft Azure's reacceleration [4] - Investors wanted more explicit language about supply unlocking revenue reacceleration in AI from Amazon [4][5] - There's a need for more examination of growth rates between Microsoft, Google Cloud, and AWS, considering different revenue exposures [6] Investment Opportunities & Risk Assessment - Goldman Sachs views Amazon as a disproportionate risk-reward opportunity at current levels [7] - Amazon's commerce business accelerated, margins improved, and the advertising business accelerated [7] - Goldman Sachs estimates Amazon's gap earnings at $8+ in 2026 and $10+ in 2027, presenting a cheap compounding growth story [7] - Mega Cap Tech is finding a home in "Garpy" (growth at a reasonable price) [9]