AMZN vs FB
I know it’s not an apples to apples comparison but which stock do you think is a safer bet and why? Amzn has aws growth potential and FB has advertising which is still very valuable .. TC: 300
Facebook is likely to come under a ton of scrutiny in the coming years and also more companies are taking data privacy more seriously. All of this affects Facebook when it comes to ad revenue Where as Aws is a different beast. Azure may be its only real competitor, but aws has a ton of room to grow. Between the two, aws is a real winner hence Amazon
Compare valuations for a super easy decision (assuming valuation will one day matter again)
50/50 in my opinion. Meta tackles the future -> FRL Amazon is slowly conquering the world. Aws speaks for itself. And also amazon addresses human laziness.
Meta with that much of revenue and gross margin is seriously undervalued. Amzn in my view is priced accurately.
Would you share a little more insight on Meta’s revenue and gross margin?
Download any stock or finance app and see it yourself
Facebook and Google basic own online advertising. It’s not only a duopoly - it’s a really profitable one. Amazon knows how to grow revenue but also has narrow margins because they are endlessly investing. Facebook is a horrible company but the stock is better. If AWS was spun off, I’d choose AWS for growth potential.
Also with COVID accelerating the shift to online commerce ad demand has increased and will only continue to do so and as you mention both FB and Google benefit greatly from this and we will likely see increased ad costs as well based on the demand
Getting RSUs as comp: work at FB Buying stock with your own money: buy AMZN
This is a great answer !
Mind explaining why ?
I think AMZN would be more stable, and FB would be higher risk/ higher reward.
You make it sound as though meta might implode tomorrow. Whatever risks are ahead of it, it’s not in the short term. But long term - I agree with you