Billionaire investor and “Shark Tank” star Mark Cuban is bullish on Amazon (NASDAQ: AMZN).
“I have close to a billion dollars in Amazon stock,” Cuban said in an interview with Fox Business Network. “It’s my biggest holding.”
The shark said he believes Peloton is “emblematic of a bigger problem: companies that have to buy revenue, that think they can’t just grow organically.”
“You’ve seen it with Uber (NYSE: UBER). You’ve seen it with Lyft (NASDAQ: LYFT),” he said. But “if you have to just keep on spending more money in advertising than you’re gaining in revenue,” it’s going to create a problem.
What differentiates Amazon, Cuban says, is that “they were able to expand their business and increase their margins,” and “were for the most part” cashflow positive.”
“To me, Amazon is the best startup in the world,” he said.
Earlier this spring, Cuban told CNBC that along with Amazon, his second largest holding is Netflix (NASDAQ: NFLX). And “It’s been that way for years,” Cuban said at the time.
While Netflix has struggled in the last several months, and recently turned negative for the year, Cuban said, “I’m not worried about quarter to quarter fluctuations. [Netflix continues] to dominate the content and consumer delivery for over the top.”
However, while Cuban has nearly $1 billion in Amazon and an undisclosed stake in Netflix, he’s also kept much of his estimated $4.2 billion net worth out of the market.
Cuban said he has “a whole lot of cash on the sidelines,” citing uncertainty in the broader market and U.S. debt levels.