Core Thesis - LandBridge Company LLC is viewed positively due to its high-margin, capital-efficient business model and durable competitive advantage from extensive land holdings in the Delaware Basin [2][6] Financial Metrics - As of September 10th, LandBridge's share price was $52.40, with trailing and forward P/E ratios of 67.74 and 21.60 respectively [1] - The company has projected free cash flow of $160 million annually from existing operations, resulting in an EV/FCF of approximately 27 at the current share price [5] Revenue Generation - The primary revenue source for LandBridge is leasing land for oil and gas infrastructure, with produced water (PW) handling accounting for about 60-70% of total revenue [2][3] - The company's land use efficiency has improved from $724/acre to $1,018/acre, with a realistic fee range of $1,000–$2,000/acre for PW handling [4][5] Growth Potential - Since its IPO in mid-2024, LandBridge has expanded its land holdings from 72,000 acres to 277,000 acres, with potential processing capacity for over 5 million bbl/d of PW [4] - Future growth catalysts include continued land acquisitions, enhanced surface efficiency, and potential data center projects leveraging available resources [6] Competitive Position - LandBridge's business model is resilient to commodity price fluctuations, as its revenue is more closely tied to the scale of oil and gas development rather than oil prices [3] - The company maintains minimal maintenance CAPEX, resulting in free cash flow margins around 70% [3] Market Context - The stock price of LandBridge has decreased approximately 24% since previous coverage, but the bullish thesis remains intact due to the company's resilient business model [7][8]

Core Viewpoint - Amazon's growth is increasingly driven by its high-margin divisions, AWS and advertising, rather than its traditional commerce business, which is experiencing slower growth and lower margins [2][5][14]. Group 1: Revenue Breakdown - In Q1, Amazon's total sales reached $143.3 billion, with online stores generating $57.4 billion and third-party seller services contributing $36.5 billion, making these two segments the majority of Amazon's revenue [4]. - The growth rates for online stores and third-party seller services were 5% and 6% year-over-year, respectively, which are slower compared to Amazon's overall growth rate of 9% for the quarter [5]. Group 2: Profit Margins - Amazon's commerce segments have slim operating margins, similar to those of traditional retailers like Walmart and Target, which typically hover around 5% [6]. - AWS generated $29.3 billion in revenue with a 39% operating margin, accounting for 63% of Amazon's total operating profits in Q1 despite representing only 19% of total revenue [8]. - Advertising has been Amazon's fastest-growing segment, with Q1 revenue rising 18% year-over-year, although specific operating margins are not disclosed [10][11]. Group 3: Future Outlook - The rapid growth of AWS and advertising is expected to continue driving Amazon's profit growth, offsetting the slower growth in its commerce business [12][14]. - As long as AWS and advertising maintain their performance, Amazon's operating margin is likely to improve, leading to long-term outperformance for shareholders [14].