Episode Overview

Episode Title: No Mercy / No Malice: Big Tech Stock Pick of 2026 is Amazon
Host/Narrator: As read by George Hahn (from Scott Galloway’s newsletter)
Original Airdate: November 1, 2025
Main Theme:
Scott Galloway shares his annual big tech stock pick, arguing that Amazon is the most undervalued company in the Magnificent Seven thanks to a coming surge in retail margin growth powered by automation and robotics. The episode delves into how Amazon’s investments in automation and AI are reshaping costs, jobs, and the company’s future.

Key Discussion Points & Insights

1. Stock Picks and Market Misperceptions (02:08–04:45)

• Scott recounts his annual tradition of picking a big tech stock likely to outperform its peers.

  • 2025 pick: Alphabet (Google), due to the market overreacting to threats from AI and antitrust.
  • Alphabet’s existential threats (AI, antitrust) have proven to be more bark than bite, likened to “being trapped inside a speeding car with a wasp" (03:00).
  • Alphabet stock up 61% YoY, 2nd only to Tesla among the Magnificent Seven.

• Amazon’s Misunderstood Edge:

  • Market is over-fixated on AWS and missing the rising importance of Amazon’s retail automation.
  • “I believe it’s underestimating Amazon’s not so secret weapon, automation, and missing its next growth engine, retail.” (04:09)

2. Amazon’s Automation is Transformative (04:45–08:35)

• Robotic Fulfillment: By end of 2026, nearly 40 advanced robotic fulfillment centers will be operational, targeting $4B/year in cost savings; potential to hit $10B/year savings in the US by 2030 (05:30).

  • “Based on last year’s financials, $10 billion in cost savings translates to an additional $170 billion in enterprise value.” (06:08)

• Valuation and Underappreciation:

  • Amazon trades at a P/E of 34, well below its five-year average of 60.
  • Investors are “pricing in AWS’s dominance but missing the retail margin story, making Amazon one of the most underappreciated members of the MAG7.” (06:49)

• Moving Bits vs. Atoms:

  • Other tech giants (Meta, Alphabet, Apple, etc.) primarily “move bits.” Amazon and Tesla “move atoms.”
  • Amazon’s true competitive moat is logistics: “Amazon is a logistics company at its core, with 40,000 semi trucks, 30,000 vans, and 110 aircraft…” (07:24)

• Automation’s Impact:

  • Warehouse worker efficiency has skyrocketed: “Those employees now handle 22 times as many packages on average as they did a decade ago.” (08:15)
  • Massive workforce changes and layoffs underway:
    • 30,000 corporate layoffs (largest in history), but “a fraction of what’s coming for warehouse workers.” (08:27)
    • Amazon’s goal: up to 75% automation for warehouse operations; on track to have more robots than humans in warehouses by year-end.

3. The Rise of the “Robot Nation” (08:35–11:05)

• Robotics Milestones:

  • Millionth robot worker deployed mid-2025.
  • Cites robotic roles: Hercules (moves heavy carts), Pegasus (sorts/shuttles), Sparrow (picking), Sequoia (inventory mgmt.), and high-speed labelers.

• AI & Robotics Convergence:

  • AI use enables “robots to see, move, talk, learn and act” — the gap between programmed robots and adaptive, multi-tasking robots is closing. (10:10, Citigroup report summarized)
  • “At Amazon, the peanut butter and chocolate combo of AI and robotics shows up in three: …New products...faster development…optimization…” (10:37)
    • Example: Bluejay robot arm developed 3x faster with AI-designed prototypes.

4. Limits of Automation & Dangerous Jobs (11:05–12:53)

• Human Roles Still Critical:
  • Loading and unloading trucks + last-mile delivery are “the holy grail of robotics” (12:15)
  • Amazon is investing in startups for automated truck loaders; DHL orders 1,000 similar robots.
  • When these become viable, “some of America’s most dangerous jobs will mostly vanish.”

5. Wealth Transfer and Societal Costs (12:53–15:00)

• Efficiency vs. Employment:

  • “Automation represents a massive wealth transfer from Amazon’s workers to its shareholders and customers.” (13:09)
  • Internal documents: Amazon aims to automate away 600,000 jobs by 2033.
  • MIT study: Each robot added eliminates six jobs in local area.
  • Oxford Economics: Automation could displace 8.5% of global manufacturing labor by 2030.

• Policy & Politics:

  • “As with AI, it’s possible that robotics will increase GDP while reducing employment.” (13:49)
  • Critiques recent US tax policy: “President Trump’s big ugly bill made 100% bonus depreciation permanent for machinery, robotics, and automation equipment, while simultaneously gutting healthcare, education, and social safety net programs.” (14:19)
  • “Tax policies illuminate a nation’s values. Our policies suggest we want to birth robots faster and expedite the death of workers.” (14:44)

6. Memorable Closing (15:55)

• Closing Signature:
  • “Life is so rich.” (15:55, George Hahn channeling Scott Galloway’s signature sign-off)

Notable Quotes & Memorable Moments

• On Market Overreaction:

  • “These existential threats were akin to being trapped inside a speeding car with a wasp. Potentially serious in the moment, but in hindsight, more of a nuisance.” (03:00, on Alphabet)

• On Amazon’s Labor Outlook:

  • “Amazon believes it can automate up to 75% of the company's warehouse operations…putting the company on pace to have more robots than humans in its warehouses by year end.” (08:50)

• On Society’s Trade-off:

  • “Automation represents a massive wealth transfer from Amazon's workers to its shareholders and customers.” (13:09)

• On Policy & Societal Direction:

  • “Tax policies illuminate a nation's values. Our policies suggest we want to birth robots faster and expedite the death of workers.” (14:44)

Timestamps by Section

• Stock Pick Context & Alphabet Recap: 02:08–04:45
• Amazon’s Retail & Automation Edge: 04:45–08:35
• Rise of the “Robot Nation” & Automation Effects: 08:35–11:05
• Limits of Automation, Human Jobs at Risk: 11:05–12:53
• Wider Societal Changes and Policy Critique: 12:53–15:00
• Sign-off: 15:55

Summary

In this tightly argued episode, Scott Galloway makes a compelling case that Amazon, not just a cloud giant but a logistics juggernaut, is about to see outsized profits and market revaluation due to rapid, deep automation—especially in its retail segment. Automation, partly powered by AI innovations, stands to transform costs, improve margins, and enable Amazon to do what no other Big Tech firm can: bridge the world of “bits and atoms.” But these gains come at the expense of hundreds of thousands of jobs, raising uncomfortable questions about the societal costs of relentless techno-capitalist progress, and the values encoded in public policy.

The key takeaway:
Amazon is poised for a historic leap in operational leverage thanks to automation, making it Scott’s top pick for tech outperformance in 2026—if you’re comfortable with the dramatic reshaping of work and wealth it portends.