The Final Verdict – GOOG or AMZN?
While both GOOG stock and AMZN stock could be considered among the best tech stocks to own heading into 2014, only one can be king. And the simple truth is that Google is superior to Amazon.com as an investment right now.
While the frothy P/E ratios of AMZN stock have become well-known for not yet being a problem for investors, the company has been spending heavily over the past three quarters in order to foster growth. Its already-thin margins have been whittled down to practically nothing as a result.
Amazon stock analysts expect the big capital expenditures to slow heading into the coming year, but they didn’t exactly see the full extent of 2013’s spending at this time of the year in 2012 either. Plus, there’s no clear plan on how, or even if, Amazon Fresh will ultimately draw new customers to Amazon’s non-grocery business.
Google, on the other hand, is not only a growth machine … but you don’t have to pay an arm and a leg to tap into that growth trend. GOOG stock currently boasts a trailing P/E of 29, and a forward-looking one of 20. Better still, the company has a budding revenue catalyst in Google Glass that it doesn’t even necessarily need — ongoing advent of Android alone could be enough to fuel several years’ worth of growth. Google Glass is just gravy.
That makes GOOG stock the best tech stock out there at this stage in the game.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.